UBS Raises IBM PT to $195 from $170, Maintains Sell Rating

UBS Raises IBM PT to $195 from $170, Maintains Sell Rating

UBS has updated its price target for IBM (IBM) to $195 from $170, while maintaining a Sell rating on the shares. The adjustment comes as the analyst expects the US dollar's weakness and the start of the next z17 cycle to positively impact IBM's reported Q2 revenue growth relative to expectations [1].

However, UBS cautions that mixed demand across IBM's Software and Consulting divisions may dampen growth. Specifically, increasing risks of funding shortfalls in government spending across various Consulting verticals could negatively affect revenue. Despite these mixed signals, the analyst believes that the favorable conditions mentioned could offset some of the risks [1].

IBM's recent expansions in quantum education and the launch of new AI chips may also contribute to its overall financial performance, but these factors are not explicitly addressed in the UBS research note [2].

Investors should closely monitor IBM's earnings report for Q2 to gauge the impact of these factors on the company's financial health.

References:
[1] https://www.tipranks.com/news/the-fly/ibm-price-target-raised-to-195-from-170-at-ubs-thefly
[2] https://www.tipranks.com/news/ibm-expands-access-to-quantum-education-and-launches-new-ai-chips