Key Takeaways
International Business Machines (IBM) shares are on track to close at an all-time high for the third straight session. Bank of America just lifted its price target for the stock even higher.
The stock edged about 1% higher in recent trading at $285.83, on its way to topping Tuesday’s record-high close at $283.05. It’s added nearly a third of its value since the start of the year.
“IBM, despite trading at all-time highs, remains interesting,” BofA analysts wrote in a note to clients Wednesday, pointing to the company’s growth potential in generative AI, as well as quantum computing.
The company represents a “defensive investment” with improving revenue growth, BofA said, “which in turn can drive higher cash flow.” The analysts lifted their target to $320 from $290, well above the $261 mean of analysts surveyed by Visible Alpha.
The new target comes as IBM launched new software Wednesday it says could help clients keep their AI agent systems “responsible at scale.” Earlier this month, IBM also said it believes it has a “viable path” to building the world’s first large-scale, “fault-tolerant” quantum computer by the end of the decade.