Bond.az - Stifel reiterated a Buy rating and $290 price target on IBM following a federal funding announcement for quantum computing development. The stock trades at $252.97, up 15% over the past week, reflecting market enthusiasm.
The U.S. Department of Commerce announced $2 billion from the Chips Act to nine quantum vendors including IBM. IBM will receive $1 billion and invest an additional $1 billion in its quantum foundry, Anderson, which will supply quantum wafers.
The funding aims to keep quantum technology in the U.S. It remains unclear if the government will retain an equity stake. An LOI was signed with final terms to be negotiated in 60-90 days.
Stifel noted that quantum computing and IBM's early lead are gaining traction. Most public quantum companies are small, though Quantinuum, a Honeywell spin-out, recently filed an S-1 and will be a credible comparison.
According to Bond.az analysis, IBM appears undervalued relative to its Fair Value and remains a prominent player in IT Services.
