To accelerate organizations’ adoption of cloud-delivered security, International Business Machines Corporation (IBM), popularly known as IBM, has announced the launch of its new service, Secure Access Service Edge (SASE).
Following the news, shares of the company appreciated marginally on Wednesday. Moreover, it added to its gains slightly to close at $139.91 in extended trade.
SASE combines software-defined networking and network security technologies into a single cloud-based service. With SASE, IBM aims to help organizations transform their network security, keeping in mind their specific needs.
The General Manager of IBM Security, Mary O’Brien, said, “Traditional approaches to network security are not as viable in a digital world where users and applications are distributed. We’re seeing this transformation happen right before our eyes as many organizations plan to operate in a hybrid model for the foreseeable future. By focusing on business needs, our zero trust approach can help accelerate this transformation for clients thanks to the skills, methods and capabilities brought together via our alliance partnership with Zscaler.” (See IBM stock chart on TipRanks)
Last month, Credit Suisse analyst Matthew Cabral reiterated a Buy rating on the stock but raised the price target to $167 from $165, implying upside potential of 19.4% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 3 Buys and 6 Holds. The average IBM price target of $154.33 implies that the stock has 10.4% upside potential from current levels.
IBM scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 12.6% over the past year.