By Proactive
Publication Date: 2026-04-23 19:58:00
Bank of America analysts have reiterated a constructive view on International Business Machines Corp (NYSE:IBM) following the company’s first-quarter results, which delivered a modest revenue and earnings beat but prompted a more nuanced read-through on underlying software momentum and margin trends.
Bank of America maintained its “Buy” rating on IBM, with a price objective of $300, based on a valuation framework tied to 20 times projected 2027 free cash flow. Shares traded down 8% at about $232.
IBM reported first quarter revenue and earnings per share ahead of consensus expectations, supported primarily by strength in its infrastructure segment and lower-than-expected operating expenses.
The bank’s analysts noted that the upside to EPS was largely driven by reductions in SG&A and a favorable contribution from other income and…