DZ Bank analyst Ingo Wermann upgraded International Business Machines (IBM) to Buy from Hold. The analyst established a $295 price target for the stock.
IBM shares fell more than 8% on April 23 following its first-quarter earnings report. Wermann views this decline as an opportunity for a sleeper enterprise AI trade.
The bullish case centers on the watsonx AI platform, Red Hat, and IBM’s consulting division. This outlook counters market concerns regarding slowing software revenue growth and potential AI disruption to traditional business models.
IBM exceeded first-quarter revenue expectations despite recent investor skepticism.