Ahead of the Bell: Analysts upbeat on IBM's 4Q

(AP) — IBM Corp.'s strong fourth-quarter results gave analysts more confidence the company has another year of earnings growth ahead of it.

"An ongoing economic recovery along with higher IT budgets should provide a tailwind for IBM's software and hardware segments," Canaccord Adams analyst Peter Misek told clients in a note Wednesday.

He upgraded the stock to "Buy" from "Hold" and raised his price target for share to $150 from $130.

After the close of trading Tuesday, IBM reported a 9 percent jump in profit over the same quarter a year ago. Sales climbed just under 1 percent. Both figures topped estimates from analysts.

"All in, we think IBM closed out a remarkably solid 2009," Caris & Co. analyst Robert Cihra said in a note.

Cihra said a late recovery in spending on IBM's consulting services, combined with a rebound already under way in software and hardware should push IBM's profits ahead of expectations through next year.