By Ghazal Ahmed
Publication Date: 2026-01-07 03:38:00
International Business Machines Corporation (NYSE:IBM) is one of the AI Stocks Making Waves on Wall Street. On January 6, Jefferies upgrades the stock to “Buy” from Hold, stating that IBM is a beneficiary of software growth in 2026 driven by Red Hat momentum and hybrid cloud acquisitions.
“We are upgrading IBM from Hold to buy as we see a clearer path to software acceleration heading into 2026, driven by Red Hat momentum and synergy capture from recent strategic acquisitions like HCP and the pending CFLT deal.”
As per the analysts, these moves allow IBM to strengthen its hybrid cloud and data platform capabilities, boost cross-sell opportunities, and also expand its open-source monetization pathways.
The company’s Mainframe business also continues to perform well, adding what the firm deems as “another layer of stability and recurring revenue.” This in turn supports confidence in near-term execution.
“IBM trades at 26x CY27 P/E but still has upside…
