Analysts See IBM as a Macro-Resistant AI Leader With Multiple Growth Drivers

International Business Machines Corporation (NYSE:IBM) is one of the AI Stocks in Focus on Wall Street. On November 19, Evercore ISI has reiterated an Outperform rating on the stock with a price target of $315.00. The rating affirmation follows a meeting with IBM CEO Arvind Krishna and Global Head of IR Olympia McNerney.

The firm’s discussions centered around the company’s strategy, management’s thoughts on the broader macro backdrop, enterprise AI vision, mergers-and-acquisitions philosophy, and similar trending topics.

Analysts believe that IBM is a “macro-resistant hybrid IT/AI leader that is well positioned to benefit from several tailwinds, including enterprise AI adoption, focus on productivity initiatives, prioritization of data sovereignty, and Quantum differentiation….”

They noted how enterprise IT spending should track ahead of mid-single-digit GDP growth given a constructive macro environment backdrop. This should potentially lead to high-single-digit growth for technology spending overall.

Overall, the firm believes that IBM’s business transformation has enabled it to become “a consistently growing company with strong FCF generation, PTI margin expansion, and enviable revenue visibility.”

“Net/net: We see multiple vectors for growth over the medium term. Maintain $315 price target.”

International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products.

While we acknowledge the risk and potential of IBM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IBM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.