IBM Shares Gain as Jefferies Highlights Undervalued Software Potential

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A recent upgrade from Jefferies Financial Group has provided fresh momentum for International Business Machines Corp. (IBM), with the stock trading near its 52-week high. The firm’s analysts point to a significant re-rating opportunity within IBM’s software division, though traditional valuation metrics suggest investors should temper their enthusiasm.

In a move that has captured market attention, Jefferies upgraded IBM from “Hold” to “Buy” on January 6. Analyst Brent Thill also raised the firm’s price target substantially, from $300 to $360 per share. This new target suggests an approximate 20% upside from the previous closing price of $302.23.