International Business Machines Corp (NYSE:IBM) has earned a price target increase from Wedbush analysts, who also maintained their ‘Outperform' rating on their bullish view of the tech giant's role in the ongoing AI revolution. “We believe that IBM is well-positioned to capitalize on the current demand shift for hybrid and AI applications with more enterprises looking to implement AI for productivity gains and drive long-term profitable growth,” they wrote.
IBM's strong hybrid cloud push, AI deals and cheaper valuation give it an edge over Oracle despite tough competition.
Bank of America raised its price target on International Business Machines Corp (NYSE:IBM) to $320 from $290, saying the stock could re-rate higher on the back of transformational initiatives, expanding free cash flow, and accelerating revenue growth. While IBM shares are trading near all-time highs at about 22 times forward enterprise value to free cash flow, BofA analysts argue the valuation is still attractive given the company's strategic overhaul and positioning in generative and Agentic AI.
Information Technology Services Industry | Technology Sector | Mr. Arvind Krishna CEO | XWBO Exchange | US4592001014 ISIN |
US Country | 270,300 Employees | 10 Feb 2025 Last Dividend | 4 Nov 2021 Last Split | - IPO Date |
International Business Machines Corporation, renowned as IBM, operates globally, providing a comprehensive suite of solutions and services through its diverse business segments: Software, Consulting, Infrastructure, and Financing. The company’s foundation lies in offering cutting-edge integrated solutions that leverage hybrid cloud and AI technologies, supporting clients across various sectors in achieving digital and AI transformations. Initially established as the Computing-Tabulating-Recording Co. in 1911, IBM has evolved to position itself at the forefront of technological innovation, with its headquarters in Armonk, New York. Through strategic partnerships with industry giants including Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics, SAP, and more, IBM aims to enhance its offerings and expand its market reach.
Software: IBM’s Software segment is pivotal in facilitating digital and AI transformations for clients. This includes a robust hybrid cloud and AI platforms designed to work across the varied applications, data, and environments that organizations operate within. These platforms empower clients to seamlessly integrate AI into their operations, enhance their digital capabilities, and optimize their use of data.
Consulting: The Consulting segment at IBM showcases the company's commitment to integrating skills across strategy, experience, technology, and operations. It focuses on domain and industry-specific consultancy, helping businesses navigate through their digital transformation journeys by leveraging IBM's deep industry expertise and innovative technological solutions.
Infrastructure: Infrastructure solutions provided by IBM include both on-premises and cloud-based server and storage solutions. Furthermore, it offers life-cycle services essential for deploying hybrid cloud infrastructure efficiently. These services are crucial for businesses looking to modernize their IT infrastructure with flexible, scalable, and secure solutions.
Financing: IBM’s Financing segment plays a vital role in supporting clients through financing options that enable the acquisition of hardware, software, and services. This segment ensures clients can leverage IBM's solutions in a financially sustainable manner, facilitating both client and commercial financing options.