IBM (IBM) shares gained 1.5% Monday after Goldman Sachs analysts initiated coverage with a “buy” rating, citing the software, hardware, and services company’s efforts to move toward long-term growth and investments in artificial intelligence (AI). Goldman also gave a price target of $200, 14% above Monday’s closing price.
The analysts said IBM was “on a path to successfully complete its pivot to long-term growth.” They pointed to an improving mix of infrastructure software focused on open-source and AI offerings, and a “uniquely complementary consulting business which we believe is decisively gaining market share.”
The Goldman Sach analysts said that IBM was “in the middle innings” of its portfolio shift to a suite of modernized application and infrastructure software and a broader array of services, and is moving away from a legacy-focused business model.
They noted that IBM’s “organic investments in AI offerings (WatsonX) have finally begun to pay dividends, and we think …