Barclays Backs IBM With Bullish Rating Amid Quantum Computing Push
IBM's stock price is on the rise after Barclays initiated coverage on the company with an 'Overweight' rating and a price target of $350. This indicates an upside potential of about 17.5% from its previous close, according to a report from Investing.com.
The analyst expects IBM to deliver mid-single-digit organic revenue growth alongside continued margin expansion, supporting steady earnings growth while offering additional upside from its quantum computing initiatives.
IBM's infrastructure software serves large, highly regulated enterprises, creating a sticky customer base unlikely to face significant disruption from AI. Barclays also noted that the combination of consistent growth and a valuation that remains reasonable relative to its prospects underpins its bullish stance on the stock.
The Armonk, New York-based company has been investing heavily in quantum computing, with plans to spend over $10 billion in the next five years as it targets the launch of a large-scale commercial quantum system by 2029. This comes after the U.S. government unveiled a $1 billion government funding to the company last week to accelerate quantum computing development.