BMO Capital raised the firm’s price target on IBM (IBM) to $260 from $235 and keeps a Market Perform rating on the shares. The company’s results were mixed with a miss on revenues due to weakness in Consulting and Infrastructure, though its Software business growth remains solid amid recent M&A deals and offers encouraging growth prospects in FY25 with the potential addition of HashiCorp (HCP), the analyst tells investors in a research note. BMO warns however that longer term, it is still skeptical that IBM can grow Software and believes that margin challenges will persist.
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