JPMorgan: Upgrades IBM rating and target price, expects software business to continue driving growth

```htmlGolden Ten Data reported on June 23 that JPMorgan stated in a research report that IBM has spent most of the past decade repositioning itself from a hardware and services company to a platform centered on hybrid cloud and AI, led by software. JPMorgan analysts noted that software is now the main driving force of the company, accounting for about 45% of total revenue and roughly two-thirds of consolidated profits. "Given the higher profit margins of software, its ability to recognize revenue proportionally, better cash conversion, and higher-quality profit streams, which support higher valuation multiples than hardware and services businesses, we continue to see the shift toward software as a positive factor." JPMorgan upgraded IBM's rating from Neutral to Overweight and raised its target price from $270 to $291, citing strong confidence in the continued accelerated growth of IBM's software business.```