Bank of America Securities analyst Wamsi Mohan maintained a Buy rating on International Business Machines today and set a price target of $310.00.
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Wamsi Mohan has given his Buy rating due to a combination of factors that suggest a positive outlook for IBM’s future performance. The company is transitioning towards higher-margin software, which is expected to drive strong growth in free cash flow. Despite recent volatility in transaction processing revenue, which is tied to IBM’s mainframe base, the long-term prospects remain promising.
IBM’s introduction of new technologies, such as the z17 mainframe and AI acceleration through Spyre cards, is anticipated to enhance transaction processing growth. The strong shipment of MIPS, particularly those supporting AI workloads, indicates potential revenue upside. These developments, along with a favorable valuation and expected re-acceleration in transaction processing growth, underpin the Buy rating.
In another report released on July 25, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $289.00 price target.