Barclays Says IBM Has Room To Run: What Does The Chart Show? - IBM (NYSE:IBM)

International Business Machines Corp (NYSE:IBM) shares are trading higher Monday amid positive analyst coverage. Here’s what you need to know.

IBM stock is charging ahead with explosive momentum. Why are IBM shares rallying?

Barclays Sees Upside For IBM

Barclays analyst Raimo Lenschow on Monday initiated coverage on IBM with an Overweight rating and set a price target of $350, suggesting significant upside from current levels. The analyst expects solid revenue and margin leverage to help drive compounding earnings growth.

The Barclays analyst also noted that IBM has a potential quantum tailwind. IBM is investing more than $10 billion in quantum over the next five years, and when you pair it with its $5 billion Project Lightwell cybersecurity initiative, you get a combined $15 billion commitment — an attempt to buy optionality in the next platform shift while the stock is already acting like it believes. Investors have been quick to connect the dots.