Goldman Sachs released a research report with a 'buy' rating for IBM, citing the company's efforts to achieve long-term growth and invest in artificial intelligence in both software and hardware. Goldman Sachs also gave a target price of $200.
According to the financial news app Izvestia, Goldman Sachs has rated IBM (IBM.US) as 'buy', citing the company's efforts to achieve long-term growth and invest in artificial intelligence in both software and hardware. Goldman Sachs also gave a target price of $200, which is 14% higher than the stock's closing price on Monday.
Goldman Sachs analysts stated that IBM is 'on the road to successfully achieving long-term growth'. They noted that the focus on open-source and artificial intelligence products in the infrastructure software suite is constantly improving, 'We believe this is a unique complementary consulting business that is decisively gaining market share'.
AI investments are producing returns.
Goldman Sachs analysts stated that IBM is currently in the 'mid-term' of its investment portfolio transition to a modern application and infrastructure software and more extensive service, while moving away from a business model centered around traditional operations.
They pointed out that IBM's organic investment in artificial intelligence products (WatsonX) has finally begun to pay off, and they believe that the use of integrated software/service products and open-source LLM is a notable differentiating factor that provides a competitive advantage in customer cooperation.
The analyst added that they believe that with the improvement of the software business combination and the steady financial performance of the company, the stock 'can continue to receive higher ratings'. They stated that they expect IBM's long-term revenue growth to remain at 5-7%, and free cash flow to grow by about 10%.
On Monday, IBM's stock price rose 1.48%, closing at $175.01, marking a cumulative increase of about 7% since 2024.