IBM Stock Downgraded to $310 Target — But Bank of America Still Says Buy
The bank said that IBM is well-positioned for growth following its most recent financial report. The company reported adjusted earnings per share of $2.80 for the quarter, beating the LSEG estimate of $2.64. Meanwhile, revenue came in at $16.98 billion, ahead of the expected $16.59 billion.
'IBM reported a mixed quarter, where organic software deceleration was offset by strong contribution from better-than-expected Infrastructure results and higher M & A contribution.'
A closeup of a woman's hands typing rapidly on a laptop in a corporate office setting.
The firm believes that, post-earnings, IBM has turned into a 'show me' story on software in the second half of the year, but remains bullish on the overall company trajectory. The analysts further stated that they believe estimates will move higher this year and next year, 'with increasing contribution from high-margin software.'
International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products.
While we acknowledge the potential of IBM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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