IBM Stock: Why Wall Street’s Smart Money Is Suddenly Doubling Down
Big Blue’s getting a second look from analysts—and the whispers are turning into shouts. Here’s what’s fueling the bullish reversal.
The A.I. pivot paying off (finally)
After years of Watson hype and blockchain experiments, IBM’s hybrid cloud and quantum bets are gaining real traction. Not ‘moon landing’ traction—but enough to make growth investors glance sideways.
Legacy biz becoming a cash cow
Mainframes aren’t sexy, but they print money. That steady drip lets IBM fund R&D while rivals burn cash chasing the next metaverse fad.
Dividend hunters circling
With a 5%+ yield, income investors are treating IBM like a bond substitute—if bonds came with occasional blockchain press releases.
The cynical take:
This could just be hedge funds rotating into ‘old tech’ before the next market correction. Remember: IBM didn’t moon during the last crypto bull run—it just kept paying dividends.
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In fact, the firm is focusing its software segment on higher-growth opportunities through strategic acquisitions and moving away from slower and higher-cost legacy businesses. According to the analyst, this shift now positions IBM to accelerate its revenue growth, which should cause the stock price to continue climbing.
At the same time, Evercore ISI raised its price target on IBM from $275 to $315 and kept an Outperform rating. The firm, led by five-star analyst Amit Daryanani, expects IBM to maintain mid-to-high single-digit revenue growth and achieve double-digit growth in earnings per share and free cash flow in the coming years. This WOULD allow IBM to potentially generate $16 to $18 in annual EPS within the next three years. Evercore also pointed to recent improvements in market sentiment and a recent expansion of the market’s multiple as key reasons for its increased target.
What Is the Target Price for IBM?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on seven Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $267.54 per share implies 5.5% downside risk.
