IBM Story Is Underappreciated, Goldman Sachs Says Stock Can Re-Rate Higher
Generado por agente de IAWesley Park
miércoles, 5 de febrero de 2025, 1:41 pm ET1 min de lectura
GBXA--
Goldman Sachs analyst James Schneider recently expressed his views on International Business Machines Corporation's (IBM) Investor Day, which took place on February 4. Schneider maintained a Buy rating and a $275 price forecast, considering the company remains underappreciated in the TMT sector and offers discovery value, especially for long-only investors. The analyst noted that IBM projects over 5% total revenue growth from 2025 to 2027, including M&A, with pre-tax margin and FCF growth outpacing revenue growth.
Schneider highlighted IBM's strategy to sustain accelerated long-term Software revenue growth of around 10%, surpassing their previous expectation of high-single digits for 2025-2027. He noted that IBM raised its medium-term Software revenue growth target to 10%, up from mid-single digits, with Red Hat seeing mid-teens growth. The analyst sees a potential upside in IBM's Software growth and margins, fueled by increasing demand for containerization, OpenShift, Ansible, and RHEL. Additionally, IBM's early leadership in GenAI, with ~$1 billion in Software GenAI bookings to date, presents further growth opportunities, adds the analyst.
IBM's Consulting business is expected to outperform the market through share gains, and the Infrastructure business is forecasted to grow 1%-3%, on mainframe and storage growth. Overall, the analyst notes the company is on track to achieve long-term growth driven by stronger software growth and market share gains in the consulting business.
Last month, IBM reported fourth-quarter earnings of $3.92 per share, which beat the analyst consensus estimate of $3.75. Quarterly revenue came in at $17.55 billion, which beat the analyst consensus estimate of $17.54 billion. Investors can gain exposure to the stock via First Trust NASDAQ Technology Dividend Index Fund TDIV and FT Vest Technology Dividend Target Income ETF TDVI.
Price Action: IBM shares are down 0.80% at $262.33 at the last check Wednesday.
Read Next:
Workers Long for The Day Pensions Make A Comeback — 83% Say Everyone Deserves A Pension, Not Just Public Employees
IBM--
Goldman Sachs analyst James Schneider recently expressed his views on International Business Machines Corporation's (IBM) Investor Day, which took place on February 4. Schneider maintained a Buy rating and a $275 price forecast, considering the company remains underappreciated in the TMT sector and offers discovery value, especially for long-only investors. The analyst noted that IBM projects over 5% total revenue growth from 2025 to 2027, including M&A, with pre-tax margin and FCF growth outpacing revenue growth.
Schneider highlighted IBM's strategy to sustain accelerated long-term Software revenue growth of around 10%, surpassing their previous expectation of high-single digits for 2025-2027. He noted that IBM raised its medium-term Software revenue growth target to 10%, up from mid-single digits, with Red Hat seeing mid-teens growth. The analyst sees a potential upside in IBM's Software growth and margins, fueled by increasing demand for containerization, OpenShift, Ansible, and RHEL. Additionally, IBM's early leadership in GenAI, with ~$1 billion in Software GenAI bookings to date, presents further growth opportunities, adds the analyst.
IBM's Consulting business is expected to outperform the market through share gains, and the Infrastructure business is forecasted to grow 1%-3%, on mainframe and storage growth. Overall, the analyst notes the company is on track to achieve long-term growth driven by stronger software growth and market share gains in the consulting business.
Last month, IBM reported fourth-quarter earnings of $3.92 per share, which beat the analyst consensus estimate of $3.75. Quarterly revenue came in at $17.55 billion, which beat the analyst consensus estimate of $17.54 billion. Investors can gain exposure to the stock via First Trust NASDAQ Technology Dividend Index Fund TDIV and FT Vest Technology Dividend Target Income ETF TDVI.
Price Action: IBM shares are down 0.80% at $262.33 at the last check Wednesday.
Read Next:
Workers Long for The Day Pensions Make A Comeback — 83% Say Everyone Deserves A Pension, Not Just Public Employees
Divulgación editorial y transparencia de la IA: Ainvest News utiliza tecnología avanzada de Modelos de Lenguaje Largo (LLM) para sintetizar y analizar datos de mercado en tiempo real. Para garantizar los más altos estándares de integridad, cada artículo se somete a un riguroso proceso de verificación con participación humana.
Mientras la IA asiste en el procesamiento de datos y la redacción inicial, un miembro editorial profesional de Ainvest revisa, verifica y aprueba de forma independiente todo el contenido para garantizar su precisión y cumplimiento con los estándares editoriales de Ainvest Fintech Inc. Esta supervisión humana está diseñada para mitigar las alucinaciones de la IA y garantizar el contexto financiero.
Advertencia sobre inversiones: Este contenido se proporciona únicamente con fines informativos y no constituye asesoramiento profesional de inversión, legal o financiero. Los mercados conllevan riesgos inherentes. Se recomienda a los usuarios que realicen una investigación independiente o consulten a un asesor financiero certificado antes de tomar cualquier decisión. Ainvest Fintech Inc. se exime de toda responsabilidad por las acciones tomadas con base en esta información. ¿Encontró un error? Reportar un problema
SOBRE NOSOTROS
Nuestra historiaAutores de noticiasBase de conocimientosPolítica de privacidadTérmino de usoDescargo de responsabilidad de corretaje de tercerosTérminos de uso de AIMEDivulgaciones de riesgos de AInvest AICarrerasCONTÁCTENOS
Email: support@ainvest.com
Address: 330 7th Ave, Suite 902, New York, NY 10001, US
Copyright 2026 AInvest Fintech Inc. All rights reserved.
Comentarios
Aún no hay comentarios