credit suisse analyst shannon cross reiterates international business machines corp ibm with an outperform and a 162 price target ibm is likely to report secondquarter results for 2023 after the market closes on july 19 cross maintains her revenue estimate of 1558 billion flat yy and nongaap eps of 202 which aligns with consensus due to its foundational models and significant consulting resources she continues to believe ibm is wellpositioned to be a leader in ai the analyst expects ibm to maintain 2023 revenue guidance of up 3 to up 5 fx estimated to be neutral given no significant change in it spending since april she maintained her 2023 revenue estimate of 6212 billion up 3 yy the analyst will look for more details on the contribution from apptio which is likely to close sometime during the second half of 2023 in addition to apptio ibm announced the acquisitions of ahana cloud software and agyla sas consulting during the quarter the analyst expects the company to remain acquisitive supported by 13 billion cash excluding the 46 billion for apptio in addition to the launch of watsonx during the last few months ibm reported a handful of ai customer partnerships and unveiled a generative ai center of excellence coe over 100 clients have interacted with ibm through the coe which has more than 1000 generative ai specialists nearterm the analyst believes the consulting unit will lead most ai engagements she estimates up 7 yy in 2q23 and 2023 also apptio has collected data on 450 billion of customer it spending that she thinks can be applied to ibm’s foundational models cross modeled 3q23 revenue of 1464 billion up 4 yy and nongaap eps of 218 versus consensus of 1486 billion and 214 respectively for 2023 the analyst estimates revenue up 3 yy to 6212 billion with nongaap eps of 948 versus consensus of 6227 billion and 943 respectively cross also maintained a 2024 revenue estimate of 6501 billion but tweaked nongaap eps to 1020 from 1028 price action ibm shares traded higher by 075 at 13393 on the last check tuesday