BofA Raises IBM Price Target to $330 and Calls It the Quantum Leader
Bank of America cited a heavy ArXiv research output plus recent product announcements and framed the July 22 quarterly report as the test of whether that edge will lift revenue and free cash flow.
Overview
- Bank of America raised its IBM price target to $330 from $315 on Monday and kept a Buy rating, a move that pushed the stock higher in early July.
- Analyst Wamsi Mohan called IBM the “leader in the quantum category” after attending the Quantum Tech World Conference and citing the company’s research footprint.
- Between October 2025 and April 2026 IBM published 781 papers on ArXiv, a volume the analyst said outpaced rivals such as Google and Xanadu and supports claims of technical leadership.
- BofA projects Q2 revenue of $18.0 billion and EPS of $3.03 and expects IBM to raise full‑year 2026 guidance for revenue and free cash flow when it reports on July 22.
- Investors will watch the July 22 results for concrete signs that improved software mix, mainframe refresh demand, or Confluent contributions are turning IBM’s research and product wins into faster revenue and cash growth given commercial quantum uses remain nascent today.