Bank of America Securities analyst Wamsi Mohan has reiterated their bullish stance on IBM stock, giving a Buy rating on June 16.
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Wamsi Mohan has given his Buy rating due to a combination of factors that highlight IBM’s strategic transformation and growth potential. Over the past five years, IBM has shifted its focus towards strategic mergers and acquisitions, shedding lower growth and high-cost businesses, and rebalancing its portfolio towards cloud and AI trends. This transformation positions IBM well for growth in emerging technologies like Generative AI and Agentic AI, with potential future advancements in quantum computing.
Additionally, IBM’s mainframe has gained relevance, driving growth in AI and software, which supports higher quality transaction processing. The company’s hybrid cloud approach and platform strategy are expected to yield higher value, with GenAI and RedHat contributing to portfolio acceleration. Despite its past underperformance, IBM’s current initiatives and improving revenue growth make it a defensive investment with the potential for increased cash flow, justifying the raised price objective to $320.
In another report released on June 16, Evercore ISI also maintained a Buy rating on the stock with a $315.00 price target.