IBM’s cloud, analytics and security segments should easily offset declines in its legacy business and present a buying opportunity for investors looking for sustainable revenue growth, according to one analyst.
Nomura Instinet’s Jeffrey Kvaal initiated coverage on the technology company with a buy rating and set a 12-month price target of $160, implying more than 16 percent upside from Wednesday’s close.
“Robust enterprise relationships, history in mission-critical applications, and strong professional services business make IBM singularly qualified to help enterprises adopt complex hybrid and multi-cloud networks,” Kvaal said in a note to clients. “We believe the IBM Cloud has a sustainable role, particularly in highly regulated industries.”
