He sees significant upside in the overlooked IT giant

He sees significant upside in the overlooked IT giant


RBC Capital Markets and analyst Matthew Swanson began covering the legendary IT company IBM, and started shouting “buy,” CNBC reports.

Swanson believes investors are ignoring the company and its values, and expects IBM to carve out its own niche in AI as it did in hybrid cloud services.

– Undervalued

The analyst set a price target of $188 per share. stock, which equates to a 28 percent rise from Tuesday’s closing price.

With a price target of $188 per share, Swanson is also the most positive analyst on the stock. Coincidentally, the two latest analyzes of the IT giant are the most positive, while the other is Melius Research’s update on September 11, where they set a price target of $175 per share. Share, data from Bloomberg show.

IBM shares are up just 4% this year, although other technology stocks gained significantly thanks to the AI ​​enthusiasm that spread earlier this year.

“We feel that the company’s software business is misunderstood and undervalued, especially its role in hybrid environments, artificial intelligence and cost optimization,” Swanson wrote in the analysis, adding that he is satisfied with the company’s positioning relative to the rest of the competition.

– A unique role

The analyst believes IBM can support companies in their work using AI, just as it did when it built customer relationships in its cloud services in the wake of the pandemic.

“IBM has created what we believe is a unique role in hybrid cloud services to enable digital transformation at enterprise scale, using the products of IBM and its partners,” Swanson writes.

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“We feel that IBM will use a similar playbook to GenAI, becoming a major player in governance and model management as it benefits from its independence and is able to share in the success of its partners regardless of who wins,” he adds.

Hanisi Anenih

Hanisi Anenih

"Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst."

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