Goldman Sachs analysts gave IBM a “buy” rating, highlighting the company’s focus on long-term growth and investments in AI. They noted IBM’s advances in infrastructure software, AI, and consulting, predicting that the company could gain market share as its AI investments pay off. IBM shares rose 1.5% on Monday following the rating, with a target price of $200 set by Goldman Sachs. The analysts believe IBM is successfully transitioning to a more modernized portfolio and expect continued revenue growth in the long term, thanks to its software business mix and consistent financial performance. IBM’s organic investments in AI, such as WatsonX, are starting to yield results, providing a competitive edge in serving clients. Overall, analysts anticipate IBM’s revenue growth to remain between 5% and 7% and free cash flow to increase by around 10%. IBM shares closed at $175.01 on Monday, reflecting a 7% increase in 2024.
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https://www.investopedia.com/ibm-could-grow-market-share-as-ai-investments-pay-off-goldman-sachs-says-8668373
Goldman Sachs Predicts IBM’s Market Share Could Increase as AI Investments See Returns
:max_bytes(150000):strip_icc()/INV_IBM_Building_GettyImages-1540328019-1c52d1d76091486f940b4f2eea75a5ac.jpg?w=1024&resize=1024,1024&ssl=1 "Goldman Sachs Predicts IBM’s Market Share Could Increase as AI Investments See Returns")