IBM Stock Can Keep Setting Records, Analyst Says. How High Shares Could Go.
Barrons, Sept 12, 2024, 11:37 am EDT
IBM stock closed at a new high Wednesday, and there’s plenty of gas left in its tank to keep going, the team at Evercore ISI says.
Shares ended the day at $209.89, their first time closing in record territory in more than a decade. The stock’s previous record was set on March 14, 2013, when shares closed at $206.12. The fresh record came after Evercore ISI analysts led by Amit Daryanani raised their price target on IBM to $240 from $215 and reiterated an Outperform rating.
The analysts say the company’s growth will accelerate next year. Wall Street’s estimate for 5% growth “is fairly conservative,” they wrote, and if the macro environment remains stable, there is “sizable upside” to the stock. Their new price target represents a 14% gain from Wednesday’s close.
IBM is one of the oldest tech companies around. It was founded in 1911 under a different name and has gone through numerous periods of growth and decline. The stock was a Wall Street darling in the 1950s through the 1980s and popped during the dot-com bo-m. Shares peaked around 2013, fell, and have stayed flat until the past year.
The stock has gotten a lift from the artificial intelligence frenzy. Last month, the company reported second-quarter earnings results that came in ahead of analysts’ expectations, citing rising customer demand for new AI projects.
Shares were 0.1% higher to $210.12 in Thursday trading and have gained 28% this year.
Write to Emily Dattilo at emily.dattilo@dowjones.com
https://www.barrons.com/articles/ibm-stock-price-ai-record-8e6b385a?siteid=yhoof2