IBM : BofA maintains Buy recommendation on eve of earnings release
In a research note, the intermediary said it was concerned about the development of consulting activities in the wake of the warning issued by Accenture last month.
Conversely, BofA said it expected a possible upward revision of targets in software, where IBM is currently forecasting growth of around 10%.
The analyst says he will be paying particular attention tomorrow to the evolution of the order backlog in generative AI, which he said had reached $100 million at the last business update, but could now reach $500 million, according to his estimates.
BofA still expects IBM to generate $12 billion in free cash flow (FCF) in 2024.
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