A downward trend on the horizon. . .
"Apr. 10, 2017 12:40 PM ET
After pulling out one-time items like a lower tax rate, Bernstein’s Toni Sacconaghi figures IBM's 2016 free cash flow was more like $9.1B, rather than the $11.9B reported. He expects FCF will be inflated by one-time items again this year.
His comments today follow last week's note that IBM's multiple of free cash flow had 'expanded materially' over the past few years.
Sacconaghi has a Market Perform rating on IBM, with $150 price target suggesting 12% downside."