As International Business Machines Corp. (NYSE: IBM) stock price retests a crucial multi-month resistance level, Wamsi Mohan, a Wall Street analyst from Bank of America Corporation (NYSE: BAC), reiterated his 12-month bullish sentiment.

In a note to clients on Monday, July 6, Mohan maintained a Buy rating and raised his 12-month price target to $330 from $315. At today’s price of $296.94, the new target for IBM stock implies an upside of approximately 11.13% over the next 12 months.

Mohan highlighted several positive catalysts behind the upgrade. He expects IBM to modestly raise its FY26 guidance on both revenues and free cash flow (FCF).

As such, the analyst sees additional upside for IBM stock from faster-than-expected synergies related to the Confluent acquisition. Furthermore, Mohan cited stronger growth in the company’s software business and its power and storage segment within the infrastructure space.

According to the note, Confluent is expected to generate $340 million in revenue in the second fiscal quarter, representing about 5% of software revenue growth. Mohan emphasized IBM’s ongoing mix shift toward higher-margin software, which is driving robust free cash flow generation and providing long-term optionality from quantum computing initiatives.

IBM stock price forecast and outlook

Following Mohan’s bullish IBM stock forecast, 17 Wall Street analysts have an average estimate of $302.94, based on data from TipRanks.

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The Wall Street analysts could be signaling an average moderate Buy on IBM stock following its consolidation over the past 12 months. At the time of reporting, the IBM share price is trading near the same resistance level established in 2025.

If the IBM share price is rejected again at this resistance, the Wall Street analysts’ IBM stock price forecast could be invalidated. However, if the IBM share price retests this year’s peak, Mohan’s target could be hit.

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