Evercore ISI Raises IBM Price Target to $330, Adds Stock to Tactical Outperform List

Core Viewpoint - IBM is positioned as a significant player in the AI sector, with analysts optimistic about its upcoming quarterly results and long-term growth potential [1][2]. Group 1: Quarterly Results Expectations - Evercore ISI anticipates IBM will report Q4 results that are in line with or slightly better than expectations, driven by strengths in Infrastructure and improvements in Consulting [2]. - The firm expects IBM's cost-saving initiatives to yield $4.5 billion in gross run-rate savings by 2025, which will support margin expansion and EPS upside in Q4 [2]. Group 2: Future Guidance and Key Focus Areas - IBM is expected to provide formal guidance for CY26, with initial growth forecasts at the lower end of the mid-single-digit target range and approximately $15 billion in free cash flow [3]. - Investors will be looking for updates on AI bookings, the CFLT acquisition, quantum computing advancements, and the growth trajectory of Software and Consulting [3][4]. Group 3: Specific Updates of Interest - Key updates sought by investors include: 1) AI bookings and revenue disclosures, along with expectations for their contribution to growth in 2026 [4] 2) Details on the CFLT acquisition, including strategy, integration with IBM's software portfolio, and revenue/cost synergy opportunities [4] 3) Progress in Quantum Computing, aiming for quantum advantage by 2026 and an error-corrected computer by 2028 [4] 4) Software growth trajectory for 2026 and Consulting signings that could drive inflection in 2026 [4] 5) Updates on ongoing cost-saving initiatives [4].