international business machine (NYSE:IBM) In the technology field, it lags significantly behind its more glamorous peers. That wasn't necessarily the case for the stock as of Friday, with shares closing up nearly 3%. This was more than double the previous rate of 1.2%. S&P500 The index rose on this day. Researcher upgrades were the main reason for the notable increase.
Evercore ISI raises price equivalent to acquisition of IBM
The IBM upgrade personnel were the following teams: evercore ISI analysts led by Amit Daryanani have changed their recommendation on the stock for the better. Analysts currently feel that IBM's rating is Outperform (in other words, Buy), one notch above Inline (Hold). Forecasters also raised their price target on the stock to $200 from $165.
In their view, IBM is now poised to benefit from this year's bullish developments in technology. They feel that businesses will increase IT spending to improve productivity. Additionally, the explosive growth of artificial intelligence (AI) apps and capabilities should increase spending in sectors such as consulting and software. IBM is active in both areas.
That said, the company isn't necessarily associated with rapidly emerging technology. The Evercore ISI team characterized this as “an overlooked beneficiary of increased AI adoption.”
Expected ripple effects
Consulting and software aren't the only areas of IBM's expertise that could benefit from these tailwinds, analysts at Evercore ISI believe. They also believe that the introduction of AI will have a positive impact on the company's data business and its efforts in the AI space.
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Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends International Business Machines. The Motley Fool has a disclosure policy.
Why IBM Stock Soared Friday was originally published by The Motley Fool.