The shares of tech giant IBM have reached new highs earlier this week. The company’s stock has closed at a record for each of the past five days, including $214.79 per share on Friday. But, according to analysts over at Evercore ISI, the rally isn’t over.
In a note sent to clients, Evercore ISI analyst Amit Daryanani said that the current Wall Street projections for IBM’s growth are “conservative” and that he sees “a sizable upside” for the company’s shares in the future.
“While we do think IBM’s growth will accelerate next year, street estimate for 5% growth is fairly conservative, and should macro remain stable, we could see room for sizable upside (very high single digit growth), and free cash flow could be in the $13.5 billion+ range – implying plenty of upside ahead on the name,” Daryanani wrote.
Daryanani kept an “Outperform” rating on the stock while adjusting his price target from $215 to $240.
It is important to note that Daryanani’s price target is the highest among analysts tracked by FactSet, while other analysts seem to be split over the stock. With an average price target of $198.50, the IBM stock has 43% “Buy” ratings, 24% “Sell” ratings, and 33% “Neutral” ratings.