IBM is trading at its highest levels since 2014 after the tech giant's top-line beat for Q4
The Dow is up triple digits this morning, and a lot of it has to do with IBM Corp (NYSE:IBM). The stock is up 10.2% to trade at $191.58 at last check, after the tech titan reported adjusted earnings of $3.87 per share on $17.38 billion in revenue for the fourth quarter, both of which exceeded analyst estimates. IBM also reported upbeat guidance for 2024 thanks to increased demand for its artificial intelligence (AI) software.
In response, no fewer than six brokerages have upped their price target, the highest coming from Jefferies to $215 from $180. The bull notes were overdue; coming into today, IBM's consensus 12-month price target of $173.87 was a 6.7% discount from its current perch. Upgrades could keep the wind at the equity's back, considering 10 of the 13 brokerages in coverage maintain "hold" or "strong sell" ratings.
Out of the gate, the stock hit a 10-year high of $192.39, and is on track for its best single-session pop since March 2020. The shares are now over 33% higher year-over-year, with support in place at their ascending 40-day moving average.
In just the first hour of trading, over 54,000 calls have changed hands, volume that's pacing to be in the highest percentile of its annual range. The weekly 1/26 197.50-strike call that expires tomorrow is the most popular, as is the February 195 call.