By Ghazal Ahmed
Publication Date: 2026-01-18 21:54:00
International Business Machines Corporation (NYSE:IBM) is one of the Trending AI Stocks on Wall Street. On January 13, BofA Securities analyst Wamsi Mohan raised the price target on the stock to $335.00 (from $315.00) while maintaining a Buy rating. Firm analysts see robust FCF outlook for IBM, along with higher-margin software mix; offsetting near-term headwinds.
Following a robust year in 2025, firm analysts believe IBM is up for a more modest year due to a weaker close to F25 and several headwinds in F26. Analysts anticipate softer PTI margin driven by workforce rebalancing initiatives when IBM reports on F4Q25 on Jan 28th.
BofA also estimates a workforce rebalancing expense of $400mn in 4Q, which is expected to limit full-year 2025 PTI margin expansion to about 70bps. This is below management guidance of 100 bps. It also anticipates lower taxes to be a partial offset to EPS.
The firm anticipates about 5% revenue growth in 2026, led by robust software growth and…
