IBM price target raised to $250 from $211 at RBC Capital

RBC Capital raised the firm’s price target on IBM to $250 from $211 and keeps an Outperform rating on the shares ahead of its Q3 results. Sentiment has improved throughout the quarter, and the firm continues to see increasing thematic inbounds in addition to free cash flow support, the analyst tells investors in a research note. RBC adds that it continues to look for greater software traction, particularly from Red Hat, which the management expects to re-accelerate in the second half of the year as the first half strength was largely driven by better-than-expected infrastructure performance late in the refresh cycle as well as GenAI supporting consulting.