Barclays Lifts IBM Stock With $350 Price Target Amid Quantum Computing Momentum

Shares of International Business Machines Corp. (NYSE: IBM) jumped nearly 8% in premarket trading on Monday after Barclays initiated coverage on the stock with an 'Overweight' rating and a price target of $350.

The bank's analysts, led by Raimo Lenschow, believe that nearly half of IBM's revenue and most of its profit come from software, which is expected to continue growing as it outpaces other business lines.

Lenschow noted that IBM's infrastructure software serves large, highly regulated enterprises, creating a sticky customer base that is unlikely to face significant disruption from AI.

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 quantum computing initiatives.