IBM price target raised to $150 from $145 at BMO Capital

BMO Capital raised the firm’s price target on IBM to $150 from $145 and keeps a Market Perform rating on the shares. The firm thinks IBM can modestly grow Software revenues, excluding Red Hat, helped by an improvement in its Transaction Processing growth prospects due to more aggressive pricing strategy and high retention, but tells investors in a research note that its Consulting business faces cross currents including macro-related headwinds, and longer-term deflationary impact of generative AI.