Bank of America Securities analyst Wamsi Mohan has reiterated their bullish stance on IBM stock, giving a Buy rating today.
Wamsi Mohan has given his Buy rating due to a combination of factors that highlight IBM’s potential for growth and stability. IBM reported a 2% constant currency revenue growth for the quarter and anticipates at least 4% growth in the next quarter, with further acceleration expected in the second half of the year. This growth is driven by contributions from new Mainframe products, mergers and acquisitions, and a reacceleration in software, despite some moderation in consulting services.
Additionally, IBM’s management has noted no significant changes in client purchasing behaviors, which suggests stability in demand. The company has also achieved significant cost savings, amounting to $3.5 billion, which positions it well to handle potential macroeconomic slowdowns. IBM’s focus on improving revenue growth and cash flow, which can be reinvested for further mergers and acquisitions, supports its long-term growth strategy. These factors, along with expectations of mid-teens growth in its RHT software and positive infrastructure trends, underpin Mohan’s Buy rating.
Mohan covers the Technology sector, focusing on stocks such as Apple, International Business Machines, and Western Digital. According to TipRanks, Mohan has an average return of 8.3% and a 53.01% success rate on recommended stocks.
In another report released today, RBC Capital also maintained a Buy rating on the stock with a $276.00 price target.