Barclays Sees 17.5% Upside in IBM, Flags SanDisk’s Record Shorts
BCS•Barclays initiated Overweight coverage on IBM with a $350 price target implying roughly 17.5% upside, highlighting its software-driven growth, hybrid cloud focus and AI tailwinds. The bank also noted SanDisk’s record-high short interest despite a 4,000% one-year surge and $42 billion in locked supply agreements.
1. Overweight Rating on IBM with $350 Target
Barclays launched coverage on IBM with an Overweight rating and set a $350 price target, implying about 17.5% upside from its last close. The firm cited IBM’s shift to software—now nearly half of revenue—hybrid cloud strategy centered on Red Hat and OpenShift, and AI-driven enterprise spending as key growth drivers, projecting mid-single-digit organic revenue growth and margin expansion.
2. SanDisk Short Interest Hits Record High
Barclays highlighted that SanDisk’s shares have rallied 4,000% over the past 12 months and 600% year-to-date, trading near $1,650, while short interest reached record levels. The note pointed to $42 billion in supply agreements underpinning AI-driven memory demand but warned that elevated bearish bets could signal significant downside risk or prompt short covering that drives further volatility.
