This AI Pioneer Could Deliver $18 EPS by 2027 - Here's Why Investors Are Buying IBM (IBM)

International Business Machines Corporation (NYSE:IBM) is one of the 12 AI Stocks Every Investor Should Be Watching. On June 16, Evercore ISI analyst Amit Daryanani raised the stock price target to $315 from $275 and kept an “Outperform” rating on the shares.

According to the firm, IBM can sustain mid to high single-digit sales growth and double-digit EPS and free cash flow growth over the next several years. This will enable the company to trend towards $16-$18 of EPS power over the next three years.

The analyst cited recent market multiple expansion for its raised target on the shares.

International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products.

While we acknowledge the potential of IBM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 AI Stocks on Wall Street’s Radar and 15 AI Stocks Making Waves on Wall Street.

Disclosure: None.