{"id":63744,"date":"2023-09-20T22:45:58","date_gmt":"2023-09-21T02:45:58","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/ibm-stock-gets-a-new-bull-why-its-software-business-is-misunderstood\/"},"modified":"2023-09-20T22:46:02","modified_gmt":"2023-09-21T02:46:02","slug":"ibm-stock-gets-a-new-bull-why-its-software-business-is-misunderstood","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=63744","title":{"rendered":"IBM Stock Gets a New Bull. Why Its Software Business Is \u2018Misunderstood.\u2019"},"content":{"rendered":"
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\n IBM\u2019s<\/span>
\n software business is undervalued and the stock could climb close to 30%, according to its newest bull.<\/p>\n

RBC Capital Markets initiated coverage on the stock Wednesday with an Outperform rating and a price target of $188, implying a 28% upside to Tuesday\u2019s closing price.<\/p>\n

\n

Analyst Matthew Swanson said the tech giant\u2019s software business was \u201cmisunderstood and undervalued,\u201d particularly when it comes to its role in AI and spend optimization. It also cited
\n IBM\u2019s<\/span>
\n \u201cunique role\u201d in enabling hybrid cloud environments\u2014combining public cloud, private cloud, and on-premises infrastructure.<\/p>\n

He added that while IBM (ticker: IBM) now sees 75% of revenue coming from software and consulting, investors still view the company \u201clargely from its hardware and services lens.\u201d Swanson said the company trades in line with consulting peers but at a \u201csignificant discount\u201d to software peers.\u00a0<\/p>\n

\u201cWe\u2019re optimistic on the competitive positioning and unique role that IBM plays in the tech ecosystem with its value proposition best represented by enabling efficient digital transformation through consulting and software,\u201d Swanson said.<\/p>\n

RBC is in the minority, however. Just 28% of analysts covering the stock have a Buy rating, with 67% rating the shares Hold, according to FactSet data. The average price target is $147.47, or 0.6% higher than its Tuesday closing price.<\/p>\n

Write to Callum Keown at callum.keown@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

IBM\u2019s software business is undervalued and the stock could climb close to 30%, according to its newest bull. RBC Capital Markets initiated coverage on the stock Wednesday with an Outperform rating and a price target of $188, implying a 28% upside to Tuesday\u2019s closing price. Analyst Matthew Swanson said the tech giant\u2019s software business was […]<\/p>\n","protected":false},"author":1,"featured_media":63745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-63744","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nIBM Stock Gets a New Bull. 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