What Are Analysts Talking About IBM Stock?

We recently published a list of 10 Stocks That Analysts Are Talking About. In this article, we are going to take a look at where International Business Machines Corporation (NYSE:IBM) stands against other stocks that analysts are talking about.

Like any other informed investor, we are always on the hunt for stocks that analysts are talking about. Analysts use their in-depth research expertise, industry knowledge, and industry connections to figure out how well companies are doing every quarter.

Once they stumble upon something that could change the course of that company’s stock, they come out with analyst updates. These are usually in the form of an upgrade or downgrade, or simply an update on a previously assigned rating.

For retail investors, going through these reports saves a lot of time. This is why we came up with 10 stocks that analysts are talking about this week. To come up with the list of 10 stocks that analysts are talking about, we considered companies that received an analyst upgrade or coverage in the last 5 days.

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International Business Machines Corporation (NYSE:IBM)

International Business Machines Corporation (NYSE:IBM) is a leading integrated solutions and services provider that operates through financing, software, infrastructure, and consulting segments. The software giant was boosted by Bank of America analyst Wamsi Mohan with a target price hike from $250 to $260 while reiterating the Buy rating.

The investment thesis for IBM (NYSE:IBM) revolves around its safety and reliability as a dividend stock. Its near-term prospects make it an ideal choice for a defensive portfolio. The company will announce its Q4 earnings next week along with many other tech giants. While the earnings are expected to be in line or slightly better than estimates, it is the future guidance that continues to impress investors.

IBM’s (NYSE:IBM) software segment is likely to grow at just under a double-digit growth rate, well supported by a mid-single-digit growth rate for consulting and a 1% growth rate for infrastructure. This growth should continue till 2028, which adds to the reliability of the stock as an investment.

Overall, IBM ranks 1st on our list of stocks that analysts are talking about. While we acknowledge the potential of IBM as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as IBM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.