Bank of America Securities analyst Wamsi Mohan has reiterated their bullish stance on IBM stock, giving a Buy rating on July 17.
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Wamsi Mohan has given his Buy rating due to a combination of factors that suggest a positive outlook for IBM despite some near-term challenges. The analyst acknowledges that while there are decelerating trends in certain areas of IBM’s business, the company is seen as a defensive investment with potential for improved revenue growth. This growth is expected to enhance cash flows, which could be reinvested in mergers and acquisitions, further strengthening IBM’s position.
Moreover, Mohan anticipates that IBM will maintain its overall guidance for the year, with some adjustments in transaction processing and Red Hat Technologies (RHT). The expected acceleration in RHT and potential benefits from AI in consulting and software are key components of the bullish case for IBM. Additionally, infrastructure gains driven by the z17 cycle and the potential for share gains in RHT from VMware contribute to the positive outlook, supporting the Buy rating.
In another report released on July 17, RBC Capital also maintained a Buy rating on the stock with a $315.00 price target.
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