Why IBM Stock has been sneaking up!
IBM’s stock has been going up recently due to several key factors:
Strong AI performance: IBM is seeing significant growth in its artificial intelligence business, particularly with its Watsonx platform. The company reported that its Watsonx and generative AI business revenue doubled from the third to the fourth quarter of 2023.
Positive financial results: In its fourth-quarter 2023 earnings report, IBM beat analysts’ estimates, with earnings of $3.87 per share on revenue of $17.4 billion. Revenue was up 4% year-over-year, led by 6% growth in consulting revenue.
Optimistic 2024 outlook: IBM provided a strong forecast for 2024, guiding for solid free cash flow growth of about $12 billion, which exceeded analysts’ expectations.
Increased demand for AI services: The company is experiencing robust demand for its AI-related offerings, with client requests for AI solutions significantly increasing.
Strategic focus: IBM has been evolving its business to focus on providing software and services to large corporate customers, which appears to be paying off.
Market recognition: Following the positive earnings report and outlook, several Wall Street analysts raised their price targets for IBM stock.
As a result of these factors, IBM’s stock jumped nearly 13% to a more than 10-year high on January 25, 2024, reaching $196.89, its highest level since June 2013. This surge reflects growing investor confidence in IBM’s AI strategy and overall business performance.
Here are the details of price targets for IBM in June 2024:
Goldman Sachs: On June 24, 2024, Goldman Sachs set a price target of $200.00 for IBM stock. This target implies a potential upside of 13.90% from the stock price at the time.
RBC Capital: While specific price target details are not provided, RBC Capital released new analyst ratings for IBM on May 22, 2024, and May 16, 2024. These ratings likely included updated price targets, but the exact figures are not mentioned in the search results.
JP Morgan: As of April 25, 2024, JP Morgan maintained a “Hold” rating on IBM with a price target of $185.00. While this is not from June, it’s the most recent specific target provided by a major firm before June.
BMO Capital: Also on April 25, 2024, BMO Capital maintained a “Hold” rating with a price target of $190.00.
Jefferies: On the same date (April 25, 2024), Jefferies maintained a “Hold” rating with a price target of $190.00.
UBS: On April 22, 2024, UBS maintained a “Strong Sell” rating and raised their price target to $130.00 from $125.00.
