Analyst Wamsi Mohan of Bank of America Securities reiterated a Buy rating on International Business Machines (IBM – Research Report), retaining the price target of $270.00.
Wamsi Mohan has given his Buy rating due to a combination of factors that highlight IBM’s potential for growth and stability. The introduction of the z17 Mainframe, with its enhanced AI acceleration and fraud detection capabilities, is expected to drive a strong product cycle. The addition of ‘Spyre’ cards for AI acceleration further strengthens IBM’s position in handling advanced technologies like GenAI and Large Language Models, contributing to the anticipated success of the z17 cycle.
IBM’s strategic shift towards more flexible, on-demand pricing models for both software and hardware is another positive factor. This approach, coupled with the adoption of IBM’s watsonx Assistant for Z, which enhances generative AI capabilities, is expected to support revenue growth. The extension of the Mainframe cycle from two to three years also suggests longer-lasting revenue streams, making IBM an attractive defensive investment with improving revenue growth and a compelling dividend yield.
In another report released on April 25, Argus Research also reiterated a Buy rating on the stock with a $290.00 price target.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is neutral on the stock.