tiprankstipranks
The Fly

Oppenheimer starts IBM with Outperform amid pivot to software

Oppenheimer starts IBM with Outperform amid pivot to software

Oppenheimer initiated coverage of IBM (IBM) with an Outperform rating and $320 price target The firm’s bullish stance is based on the view that IBM will see sustained double-digit revenue growth in its software portfolio, driven primarily by its Red Hat offerings, will see an inflection in its consulting growth in the second half of 2025 with recovery in application development and management, and has “optionality” with creation and management of artificial intelligence applications. These drivers will result in “strong expansion activity” with existing customers, and drive continued gross and pre-tax margin expansion, the analyst tells investors in a research note. Opco says the stock the stock should also re-rate higher as IBM’s pivot to software is better appreciated.

Discover the Best Stocks and Maximize Your Portfolio:

Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1