Barclays Sees 17.5% Upside on IBM With $350 Target; $10B Quantum Plan by 2029
BCS•Barclays assigned IBM an Overweight rating with a $350 price target—17.5% upside—citing software, which accounts for nearly half of revenue and most profit, as the growth driver. IBM will invest over $10 billion in quantum computing by 2029, backed by $1 billion in U.S. government funding and a $1 billion spinout fabrication facility.
1. Analyst Rating and Price Target
Barclays initiated an Overweight rating on IBM shares with a $350 price target, implying roughly 17.5% upside from the current level. The firm noted that the stock’s valuation remains reasonable relative to the company’s growth and margin expansion outlook.
2. Software Mix Fuels Growth
Nearly half of IBM’s revenue and the majority of its profit derive from its software segment, particularly infrastructure software serving large, regulated enterprises. The analyst expects this segment to drive mid-single-digit organic revenue growth and continued margin expansion over coming quarters.
3. Quantum Computing Investment
IBM plans to commit more than $10 billion to quantum computing through 2029, including $1 billion in U.S. government grants and a $1 billion spinout to build a dedicated wafer fabrication facility. These investments aim to support the launch of a large-scale commercial quantum system by 2029.
