Goldman Sachs recently initiated coverage of IBM with a Buy rating and a $200.00 price target, citing the company’s strategic shift towards long-term growth in infrastructure software assets, particularly in open source and AI. The firm sees strong synergy between IBM’s software portfolio and consulting business, driving business transformation and potential stock re-rating.
Goldman Sachs expects IBM’s commitment to consistent financial performance to lead to positive revaluation as the company improves its software business mix. The $200.00 price target reflects confidence in IBM’s strategic direction and growth potential within the technology sector. IBM’s revenue and EPS are projected to grow steadily, with a focus on AI and hybrid cloud services generating increased investor interest.
Recent strategic moves by IBM, such as selling its QRadar product to Palo Alto Networks and open-sourcing its Granite family of models, are seen as steps towards focusing on more lucrative areas. The acquisition of HashiCorp is expected to be initially dilutive but should be accretive to earnings per share by 2026.
Analyst firms BMO Capital Markets and RBC Capital Markets maintain their respective ratings on IBM, with price targets of $190.00 and $200.00, respectively. BofA Securities also maintains a Buy rating on IBM with a price target of $209.00. InvestingPro Insights align with these positive indicators, highlighting IBM’s solid financial performance, commitment to shareholder returns, and low price volatility as appealing factors for investors.
Investors interested in exploring IBM’s financials and potential further can access additional tips from InvestingPro with a discount using the coupon code FORECASTS24. There are currently 6 additional tips available on the platform, providing additional insights into IBM’s performance and outlook.
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