IBM: BofA still a buyer before earnings call

(CercleFinance.com) - On Tuesday, Bank of America has reiterated its Buy recommendation on and $220 TP for IBM shares, ahead of the release of the American IT group's Q1 results.


The broker said that it is concerned about the development of consulting activities in the wake of the warning issued by Accenture last month.

Conversely, BofA said it expected a possible raise in targets for software, where IBM currently forecasts around 10% growth.

The analyst says he will be paying particular attention today to the evolution of the order backlog in generative AI, which he said reached $100m at the last trading update, although which could now reach $500m, he estimates.

BofA still expects IBM to generate $12bn in FCF in 2024.


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