International Business Machines Corp. (IBM) reported its highest adjusted free cash flow (FCF) margin of 15% for the year-to-date ending Sept. 30, leading to a raised full-year outlook and potential 10% stock increase to $345.00 per share. IBM stock closed at $313.09 on Oct. 27, up 13.5% from recent lows.

With an improved full-year FCF outlook of $14 billion for 2025, IBM expects a 20.9% FCF margin and potential further growth in 2026. Analysts project a rise in stock price to $345 per share, reflecting a 10.2% increase from the current market cap of $292.656 billion.

Shorting out-of-the-money put options for IBM can yield immediate income, with Nov. 28 options showing a 2.19% yield for a $300 strike price put option. This strategy offers downside protection and potential upside, making IBM stock an attractive opportunity for investors.

Read more at Barchart: IBM Raises Its FCF Outlook for 2025