International Business Machines Corp. shares rose for a 7th straight day Friday in the longest streak in more than 2 years, spurred by analysts’ predictions of wider profit margins. IBM based in Armonk, New York, added 23 cents to $122.11 at 4 p.m. in New York Stock Exchange composite trading. The shares, up 45% this year, last had a 7-day rising streak in May 2007. IBM, the world’s largest provider of computer services, increased its profit margins in July for the 7th straight Q. The company has focused on more-profitable software and services, rather than hardware, and shifted jobs to lower-cost regions. Wall Street has underestimated IBM’s earnings this year because it hasn’t taken the company’s profit margins and dependable revenue sources into account, Rob Cihra, an analyst at Caris & Co. in New York, said in report today. He increased his price target $10 to $145, making him at least the fourth analyst to predict that IBM shares will reach $140 or more. Earlier this month, the company reaffirmed its full-year profit forecast of at least US$9.70/shr and said it’s “well ahead” of a 2010 goal of at least US$10/shr. Software and services now make up more than 80% of the company’s profit. That’s helped buoy earnings even as the recession crimps sales.
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