Shares of International Business Machines (IBM, Financials) continued their rally Wednesday, climbing about 1% to $285.83 and setting up a third consecutive record-high close. The stock is up nearly 33% year to date, with Bank of America analysts saying the run isn't over.
In a client note, BofA raised its price target on IBM from $290 to $320, citing strong momentum in artificial intelligence and quantum computing. The firm called IBM a “defensive investment” with improving revenue growth and rising cash flow potential. The new target is well above the $261 consensus among analysts tracked by Visible Alpha.
The upgrade came as IBM launched new AI software designed to help companies scale their AI agent systems responsibly. Earlier this month, the company also reiterated its belief that it is on track to deliver a large-scale fault-tolerant quantum computer by the end of the decade.
