RBC Maintains Outperform Rating on IBM Ahead of Earnings

International Business Machines (IBM) is in focus as one of the AI Stocks to watch this week. RBC Capital analyst reiterated an Outperform rating with a $315 price target ahead of the third-quarter earnings report on October 22.

Investors are expecting solid results and will closely monitor revenue sub-components and overall top-line figures. IBM’s Q3 performance will be crucial for meeting full-year growth projections for Red Hat and its total software business. The company’s cost-saving initiatives utilizing generative AI technology are expected to positively impact its free cash flow metric.