Erste Group Upgrades IBM to ‘Buy’ on Strong Q3 and Red Hat-Led Growth

International Business Machines Corporation (NYSE:IBM) is one of the Must-Watch AI Stocks on Wall StreetOn December 5, Erste Group upgraded the stock from Hold to “Buy” following robust third-quarter performance and improved financial guidance. The improved financial outlook for IBM, together with Red Hat momentum, support the rating upgrade.

“Following the good Q3 results, IBM management has raised its financial guidance for the full year 2025. The company now expects revenue growth of more than 5%. The expectation for free cash flow for the full year has also been raised to around USD 14 billion.”

IBM’s software segment is also likely to continue gaining importance in the future, supported by Red Hat products. Analysts anticipate IBM to achieve a higher increase in sales next year than this year.

“The share should benefit from the Group’s positive outlook and achieve further price gains.”

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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