IBM price target raised to $215 from $180 at Jefferies

Jefferies analyst Brent Thill raised the firm’s price target on IBM to $215 from $180 and keeps a Hold rating on the shares. IBM reported a sales beat in Q4 driven by infrastructure, while software and consulting missed Street estimates on revenue and pre-tax margin, the analyst tells investors in a research note. The firm views the company as a “turnaround story” with free cash flow support as incremental investments look to reinvigorate the software business. Sentiment was overly negative heading into the print and the fiscal 2024 guidance surprised to the upside, says Jefferies. While the shares “screen attractive,” concerns around artificial intelligence monetization “keep us on the sideline,” the firm adds.