Bank of America Securities analyst Wamsi Mohan has reiterated their bullish stance on IBM stock, giving a Buy rating today.
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Wamsi Mohan has given his Buy rating due to a combination of factors that highlight IBM’s strengths and potential for growth. The company reported a strong quarter, surpassing expectations in both revenue and earnings per share. Despite a slowdown in some areas like Hybrid Cloud and Technology Platforms, IBM’s Automation and Infrastructure segments showed significant growth, with Automation increasing by 22% year-over-year and Infrastructure by 15%. This positive performance in key areas supports the company’s decision to raise its financial guidance for the future.
IBM’s strategic focus on higher-margin software and strong free cash flow generation also contribute to the positive outlook. The company’s software revenues showed improvement, driven by strong growth in areas like OpenShift, Ansible, and AI-related data services. Additionally, the Infrastructure segment is expected to continue its upward trajectory with upcoming product launches. These factors, combined with a solid consulting business and positive revisions in financial estimates, underpin Mohan’s confidence in IBM’s stock, reflected in the increased price objective of $315.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $320.00 price target.