In a report released today, Erik Woodring from Morgan Stanley maintained a Hold rating on International Business Machines, with a price target of $253.00.
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Erik Woodring has given his Hold rating due to a combination of factors related to IBM’s position in the quantum computing market. While IBM is recognized as a leader with the largest ecosystem of advanced quantum computers, totaling over 75 installations globally, the commercial application of quantum computing is still in its early stages. This nascent stage means that while there is significant potential, the current market impact and revenue generation from quantum computing are not yet fully realized.
Moreover, IBM’s recent success with HSBC in optimizing bond trading using quantum technology showcases its potential but also highlights that quantum computing remains primarily within niche sectors such as research institutions and specific industries. The anticipated advancements, such as IBM’s goal to provide an error-tolerant quantum computer by 2029, suggest future growth. However, the current market conditions and the speculative nature of future sales projections warrant a cautious approach, justifying the Hold rating.
Woodring covers the Technology sector, focusing on stocks such as Apple, Western Digital, and International Business Machines. According to TipRanks, Woodring has an average return of 2.9% and a 56.81% success rate on recommended stocks.
In another report released on September 15, Bernstein also initiated coverage with a Hold rating on the stock with a $280.00 price target.