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By Christiana Sciaudone
Investing.com -- IBM (NYSE:IBM) rose 1.8% after getting a Street-high price target on expected growth ahead.
BofA Securities set the price target for IBM at $175 from $153, forecasting sustaining growth after it spins off its infrastructure services business later this year, StreetInsider reported.
Analyst Wamsi Mohan reiterated a buy rating on the company after hosting an investor call with Chief Executive Officer Arvind Krishna.
"IBM is seeing the majority of clients adopting a hybrid cloud approach given regulations, latency concerns and data sovereignty," Mohan said. "Red Hat enables customers to deploy workloads seamlessly between private/public clouds and on-prem. Since acquiring Red Hat in 2019, IBM has improved growth rates into the high teens sustainably."
The IT services business spinoff will help simplify the company's structure, Mohan said.
IBM's had a bumpy 12 months but shares have risen more than 20% in the past two months, in part thanks to earnings for the quarter ended in March that trounced estimates.