Key TakeawaysBarclays launched coverage of IBM on Monday with an Overweight rating and set a $350 price target.Shares of IBM climbed approximately 11-12% to near $330 during premarket hours.The optimistic outlook focuses on IBM’s software division, which accounts for nearly 50% of revenue and most profits.According to Barclays analyst Raimo Lenschow, IBM’s infrastructure software caters to large, regulated corporations — establishing a durable customer base resistant to AI disruption.This bullish call adds to recent strength: IBM has climbed 28% in the last month and recorded its best weekly performance in a quarter-century.IBM shares experienced significant upward momentum on Monday following a bullish initiation from Barclays — and the catalyst wasn’t related to quantum computing developments.International Business Machines Corporation, IBMShares of IBM jumped approximately 11% in premarket action, reaching $330.11, after Barclays analyst Raimo Lenschow launched coverage with an Overweight recommendation and established a $350 price objective. This target suggests additional upside potential of 17.5% from premarket levels.The technology giant has been experiencing remarkable momentum. IBM has advanced 28% during the past 30 days and recently delivered its most impressive weekly performance in two and a half decades. Shareholders of Big Blue have enjoyed substantial gains in recent weeks.While quantum computing has dominated recent headlines — IBM secured $1 billion in federal CHIPS and Science Act funding to construct a dedicated quantum chip fabrication facility, subsequently committing over $10 billion of corporate capital toward quantum development and production over five years — Lenschow’s investment thesis focuses elsewhere.The Enterprise Software NarrativeHis investment case is more straightforward: IBM has transformed into a software-driven enterprise, and the market hasn’t fully recognized this evolution.Software accounts for approximately half of IBM’s total revenue while generating the majority of corporate profits. Lenschow anticipates this revenue composition will expand over time due to software’s superior growth characteristics.The critical element of his analysis centers on IBM’s software specialization. This isn’t consumer-facing applications or fashionable AI tools. Instead, it’s fundamental infrastructure — Red Hat Enterprise Linux, Red Hat OpenShift, automation solutions, and data analytics platforms — engineered specifically for large, sophisticated enterprises operating hybrid cloud and on-premises infrastructures.These clients will never transition entirely to cloud environments, Lenschow observes. This dynamic creates a captive, predictable revenue stream that’s difficult to disrupt.“We see mid single digit organic revenue growth and ongoing margin leverage, which should create a stable earnings compounder with a Quantum option,” he wrote.A Growing ConsensusLenschow’s perspective isn’t breaking new ground. Oppenheimer’s Param Singh employed similar terminology in January, characterizing IBM’s software assets as “sticky.” Evercore ISI’s Amit Daryanani reinforced this view in February. And during April, Citi Research’s Fatima Boolani portrayed IBM’s software and hardware as deeply embedded “across the most critical points of the world’s largest, most complex IT infrastructures.”This convergence of analyst endorsements illustrates a compelling investment narrative gaining momentum: IBM’s enterprise software foundation represents a competitive advantage rather than a burden.Additional attention has emerged from social media channels. Statements from Donald Trump in December commending IBM’s chief executive have reemerged online, circulating alongside discussions of other occasions where the president has publicly recognized particular equities in 2025.The overall Wall Street sentiment remains measured. Among analysts currently tracking IBM, 10 maintain Buy recommendations while 11 rate it at Hold — establishing a Moderate Buy consensus. The average price objective stands at $291.69, indicating the stock may be appropriately valued at present levels following its recent appreciation.IBM’s latest financial results demonstrated continued outperformance in the software division, with the corporation emphasizing hybrid cloud capabilities and AI integration throughout its enterprise customer portfolio.The post IBM (IBM) Stock Soars 12% Following Barclays Overweight Rating and $350 Target appeared first on Blockonomi.