IBM’s Software Shift Powers New Bull Case | Durham News

Durham News Today | 2 Min News | The Daily News Now! · Jul 9, 2026 · 1m

Bank of America is bullish on IBM, upgrading its rating and price target to $330, citing a major shift toward high-margin software and AI infrastructure that’s rewriting the company’s image. Software revenue, powered by Red Hat and Confluent, is outpacing overall growth and driving recurring income, while the bank also raised FY2026 guidance for stronger sales and free cash flow—critical for dividends and future moves. Still, challenges remain in the slower-growth consulting and z17 mainframe segments. IBM doesn’t need explosive growth to win; it just needs to prove consistent revenue…