IBM
International Business Machines Corporation (NYSE: IBM) jumped 10% after Barclays initiated coverage with...
Article Summary
HOLD- International Business Machines Corporation (NYSE: IBM) jumped 10% after Barclays initiated coverage with an Overweight rating and a $350 price target, citing IBM's software unit as less exposed to disruption from artificial intelligence than some other enterprise technology names.
- The broker also pointed to steady demand in infrastructure software as support for IBM's earnings profile, while IBM separately said last week it plans to invest more than $10 billion in quantum computing over five years and $5 billion in open-source software security over the same period.
- The stock's move added to a recent rally tied to International Business Machines's broader AI and quantum strategy, with the Commerce Department announcing IBM would receive $1 billion to help set up a quantum chip foundry while IBM said it would contribute $ 1 billion in cash, along with intellectual property and other assets to Anderon.
- IBM has also drawn attention from Washington on May 21 when International Business Machines announced it will contribute $1.5 billion to set up the quantum chip facility.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 9.7% | 25% | 35.0 ptsBelow Screener (9.7%) - Weak growth |
| EPS Growth Next 5Y ? | 8.3% | 25% | 20.0 ptsWeak (8.3%) - Low expectations |
| Target Price Upside ? | 10.1% above | 20% | 0.0 ptsAbove Target (10.1% above) - Target: $288.11 vs Current: $320.42 |
| Gross Margin % ? | 57.8% | 15% | 80.0 ptsVery Healthy (57.8%) - High-quality margins |
| Drawdown from 52-Wk High ? | -1.4% | 15% | 20.0 ptsBarely a Dip (-1.4%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About IBM
- International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
- It operates through Software, Consulting, Infrastructure, and Financing segments.
- The Software segment offers hybrid cloud and AI platforms that allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.
- The Consulting segment delivers strategy and technology services and intelligent operations, providing business transformation, technology implementation, managed services, application modernization, and AI-powered solutions.
- The Infrastructure segment provides on-premises and cloud-based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment.
- Its Financing segment offers client and commercial financing, and facilitates IBM clients' acquisition of hardware, software, and services.
- It has strategic partnerships with various companies, including hyperscalers, service providers, global system integrators, and software and hardware vendors that include Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others.
- Additionally, the company operate a data streaming platform.
- The company has a strategic collaboration with Arm Holdings plc for the development of new dual-architecture hardware that helps enterprises run future AI and data intensive workloads.
- The company was formerly known as Computing-Tabulating-Recording Co.
- International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.