Analyst Wamsi Mohan of Bank of America Securities reiterated a Buy rating on International Business Machines (IBM – Research Report), retaining the price target of $270.00.
Wamsi Mohan has given his Buy rating due to a combination of factors that highlight IBM’s resilience and potential for growth in a challenging macroeconomic environment. Despite broader market uncertainties, IBM has demonstrated a strong year-to-date performance, outperforming its peers. This resilience is attributed to IBM’s recurring revenue streams and the mission-critical nature of its workloads, which provide a buffer against economic fluctuations.
Furthermore, IBM’s software segment shows promising growth, particularly with contributions from Transaction Processing, Red Hat, and strategic acquisitions like HashiCorp. Although there is some caution regarding enterprise spending, the infrastructure segment is expected to benefit from the Mainframe refresh cycle, which should mitigate broader macroeconomic headwinds. Overall, IBM’s defensive portfolio, ongoing turnaround efforts, and attractive dividend yield underpin the Buy recommendation, with a price objective maintained at $270.
In another report released on April 17, Stifel Nicolaus also maintained a Buy rating on the stock with a $290.00 price target.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is neutral on the stock.
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