Copyright Benzinga
International Business Machines Corp. (NYSE:IBM) spotlighted its expanding quantum computing ambitions at its Quantum Investor Day, underscoring progress toward scalable systems and commercial viability before 2030. Executives outlined plans to integrate quantum processing units alongside traditional CPUs and GPUs, positioning IBM at the forefront of a hybrid computing era. The company's leadership reaffirmed confidence in accelerating revenue and cash flow growth in 2026, signaling that IBM's long-term bet on quantum could soon move from research to real-world returns. Also Read: IBM Stock Slips Despite Q3 Earnings Beat, Raised Guidance On Strong AI-Related Demand Analysts Reaffirm Bullish Stance Bank of America analysts led by Wamsi Mohan reiterated their Buy rating on IBM with a $315 price target, following the company's Quantum Investor Day. The analysts said IBM executives — including Jay Gambetta, Jerry Chow, and CFO James Kavanaugh — showcased meaningful progress in quantum computing. The analysts said they remain optimistic about IBM's ability to successfully commercialize quantum computing, expecting it to begin contributing meaningfully to the profit and loss statement before 2030. They noted that CFO Kavanaugh is in discussions with several governments on quantum initiatives and sees an ample addressable opportunity where IBM could gain significant share, supported by its strong mainframe base. Cloud-First Quantum Strategy The bank noted IBM continues to execute on a cloud-first approach for quantum, providing access through both shared infrastructure and dedicated on-premise systems, such as at the Cleveland Clinic. IBM's five-tier pricing model, comprising Open, Pay-As-You-Go, Flex, Premium, and On-Prem, remains unchanged and is designed to broaden user access and accelerate adoption within the quantum community. The analysts' team highlighted IBM's focus on integrating hardware and software to solidify its leadership in QC infrastructure. They noted that IBM is working to establish its Qiskit (Quantum Information Software Kit) as the de facto quantum software platform, comparable to NVIDIA Corporation's (NASDAQ:NVDA) CUDA in AI. According to the analysts, Qiskit already holds a commanding lead in adoption, based on the number of dependent projects and academic references compared with other quantum SDKs. Outlook and Valuation The bank forecasts EPS of $11.39 in 2025, $12.14 in 2026 and $12.87 in 2027. IBM trades at 25.5x 2026E P/E and 17x EV/EBITDA, maintaining a healthy dividend yield of about 2.2%. The team's $315 price forecast is based on 23x EV/FCF, above IBM's historical range, reflecting improving growth prospects and stronger cash flow visibility, supported by Red Hat integration. Price Action: IBM shares were trading lower by 1.21% to $306.30 at last check Friday. Read Next: AutoNation Steps Up Capital Returns With New $1 Billion Buyback Plan Photo by JuliusKielaitis via Shutterstock
