Citi raises IBM’s price target after the company announces a $10 billion investment to expand its quantum computing leadership.
Citi analyst Fatima Boolani increased IBM’s price target to $375 from $285 and maintained a Buy rating on the stock. The adjustment follows IBM’s plan to invest $10 billion over five years to strengthen its position in quantum computing, a market Boolani estimates at $850 billion with strong federal backing.
The move comes after IBM secured a CHIPS Act grant, reinforcing its long-term strategy in quantum and AI. Boolani described IBM as “underappreciated” and well-positioned to capture growth in the sector. Barclays also initiated coverage with an Overweight rating and a $350 target, citing IBM’s defensible software portfolio and leadership in quantum computing.
IBM’s hybrid cloud, AI, and consulting services underpin its growth strategy, with quantum computing seen as a key future driver. The $10 billion commitment signals confidence in scaling the technology amid rising competition and government support.