IBM price target raised to $210 from $185 at Bernstein

Bernstein raised the firm’s price target on IBM to $210 from $185 and keeps a Market Perform rating on the shares. The firm notes IBM’s stock has been on a tear – up 57% over the past year and 37% year-to-date. Bernstein believes that IBM’s re-rating has largely been driven by an increased belief in improved operating performance and competitive positioning of the company; a very attractive near term set up, as 2024 appears largely de-risked, and growth for FY 2025 should be strong; and more recently, potentially, some AI “pixie dust.” The firm sees a combination of short-covering, as well as incremental interest from “long-onlys” looking to ride momentum and/or looking for perceived stability.