Analyst Wamsi Mohan from Bank of America Securities maintained a Buy rating on International Business Machines and keeping the price target at $315.00.
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Wamsi Mohan has given his Buy rating due to a combination of factors including IBM’s strategic positioning in emerging technologies like quantum computing and artificial intelligence. IBM CEO Arvind Krishna’s insights suggest that while the current AI landscape may not immediately lead to artificial general intelligence, the company’s focus on quantum computing presents significant potential. Quantum computing is seen as a critical enabler for solving complex problems beyond the reach of classical systems, offering IBM a unique advantage in the tech industry.
IBM’s quantum platform has shown meaningful traction with a diverse client base, including commercial, academic, and research organizations. The company’s open-source quantum software, Qiskit, has gained substantial global adoption, further solidifying its leadership in this space. Additionally, IBM’s strategic partnerships, such as the one with Cisco, aim to advance quantum networking and system integration, reinforcing the company’s long-term growth prospects. These factors, combined with a favorable valuation and strong free cash flow growth driven by high-margin software, underpin Mohan’s Buy rating for IBM.
According to TipRanks, Mohan is a 5-star analyst with an average return of 18.4% and a 60.94% success rate. Mohan covers the Technology sector, focusing on stocks such as Apple, Dell Technologies, and Seagate Tech.
In another report released on November 21, Oppenheimer also initiated coverage with a Buy rating on the stock with a $360.00 price target.