Why Goldman Sachs Is Bullish On IBM
Portfolio Pulse from Anusuya Lahiri
Goldman Sachs analyst James Schneider has initiated coverage on IBM with a Buy rating and a price target of $200. Schneider believes the current cyclical correction in the IT sector, driven by IT spending constraints and a shift towards AI-focused CapEx, presents an opportunity for IBM. Despite concerns about Generative AI's impact on the IT Services sector, Schneider is optimistic about IBM's potential to gain market share. IBM's dividend yield is 4.24%, and the company has buyback programs that support its share price.
June 24, 2024 | 5:52 pm
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Goldman Sachs analyst James Schneider has initiated coverage on IBM with a Buy rating and a price target of $200. Schneider sees the current IT sector correction and shift towards AI-focused CapEx as an opportunity for IBM to gain market share. IBM's dividend yield is 4.24%, and its buyback programs support its share price.
The Buy rating and $200 price target from Goldman Sachs, along with the positive outlook on IBM's market share potential amid the IT sector correction and AI shift, are likely to boost investor confidence and drive short-term price appreciation. Additionally, IBM's dividend yield and buyback programs provide further support for its stock price.
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IMPORTANCE 90
RELEVANCE 100