IBM's Double-Digit Growth In TP And Data & AI Not Sustainable, Predicts Analyst
Portfolio Pulse from Nabaparna Bhattacharya
BMO Capital Markets analyst Keith Bachman has reiterated the Market Perform rating on International Business Machines Corporation (IBM), raising the price target to $152 from $150. Despite IBM's recent double-digit growth in transaction processing (TP) and Data & AI, Bachman does not believe this is sustainable. He expects IBM to sustain a low single-digit increase in TP. He also raised FY24 Software growth expectations from 4.1% y/y to 4.7% y/y.
July 20, 2023 | 7:07 pm
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IBM's price target has been raised by BMO Capital Markets analyst Keith Bachman, who also reiterated the Market Perform rating. Despite recent growth, Bachman does not believe IBM's double-digit growth in TP and Data & AI is sustainable.
The analyst's reiteration of the Market Perform rating and the increase in price target could have a positive impact on IBM's stock. However, his skepticism about the sustainability of IBM's recent growth in TP and Data & AI could temper investor enthusiasm, leading to a neutral short-term impact.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100