Key facts
- Barclays initiated coverage of IBM with an Overweight rating.
- Barclays set a price target of $350 for IBM stock.
Barclays initiates IBM with Overweight, $350 target
IN SHORT
Barclays initiated coverage of IBM with an Overweight rating and a $350 price target, contributing to an 11-12% premarket surge for the stock. The firm cited IBM's strong software business, which generates nearly half of its revenue and the bulk of its profits, as a key driver.
Key Numbers
11-12%IBM stock surge in premarket trading
$350Barclays price target for IBM
28%IBM stock gain over the past month
$1 billionFederal funding for IBM quantum chip foundry
$10 billionIBM's planned investment in quantum research
Who's Involved
Barclays
Initiated coverage of IBM stock with an Overweight rating and $350 price target
IBM
Stock surged following bullish initiation by Barclays
Raimo Lenschow
Barclays analyst who initiated IBM coverage
↳ Why This Matters
Barclays' initiation of coverage on IBM with an Overweight rating and a $350 price target highlights the investment bank's positive outlook, primarily driven by the strength and sticky nature of IBM's software business. This segment, which accounts for nearly half of IBM's revenue and most of its profits, sells foundational infrastructure software to large enterprises, creating a stable, recurring revenue base. The call builds on recent positive momentum for IBM stock, which has seen significant gains over the past month and year.