IBM Stock Gets a New Bull. Why Its Software Business Is ‘Misunderstood.’

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RBC Capital Markets initiated coverage of the company with a Buy rating and a price target implying the stock could rise close to 30%.

IBM’s software business is undervalued and the stock could climb close to 30%, according to its newest bull.

Analyst Matthew Swanson said the tech giant’s software business was “misunderstood and undervalued,” particularly when it comes to its role in AI and spend optimization. It also cited IBM’s “unique role” in enabling hybrid cloud environments—combining public cloud, private cloud, and on-premises infrastructure.

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