IBM is best positioned to capitalize on AI - Bernstein's Sacconaghi

Bernstein analyst Toni Sacconaghi reiterated a Market Perform rating and $145.00 price target on IBM (NYSE: IBM).

"Among the companies in our coverage, we believe that IBM is best positioned to capitalize on AI, given its traditional account control, its long history/brand with AI via Watson, its RedHat platform and its large consulting business. That said, execution is paramount - IBM has struggled to date in commercializing Watson and was nearly a decade ahead of AWS and Azure in developing a cloud offering, and was not able to capitalize. Within our coverage, HPE has seen the most material revenue impact to date, but it remains unclear whether HPE can be profitable, particularly given its historical experience in selling to hyperscalers. Dell's AI opportunity appears more limited. That said, if some AI training/work is done on premise or if accelerated compute broadens to other opportunities, the company could benefit."

For an analyst ratings summary and ratings history on IBM click here. For more ratings news on IBM click here.

Shares of IBM closed at $134.06 yesterday.

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