Susquehanna starts IBM at neutral, sees AI bookings concern
IBM•Wall Street sentiment remains constructive
LSEG data cited in the note showed 25 analysts rate IBM a buy on average, with a median price target of $287.09.
AI bookings split raises a valuation concern
Susquehanna said the market may be treating IBM's $12.5 billion in AI bookings as if they were software-grade revenue. It estimates roughly 80% of those bookings sit in IBM's Consulting division, which could temper investor expectations.
Susquehanna initiates IBM with neutral rating and $303 target
Susquehanna started coverage of IBM with a neutral rating and a price target of $303. The new target implies about 2.6% upside from the stock's last close, and IBM shares were down about 1% at $292.41 in early trading.
Quantum computing, software growth and free cash flow viewed positively
The brokerage pointed to IBM's quantum computing business, its "durable" double-digit software growth, and strong free cash flow generation as positives. IBM was as of the last close.
