It's time to buy International Business Machines as it's undervalued, according to RBC Capital Markets.
Analyst Matthew Swanson initiated coverage of IBM with an outperform rating, saying the value of the tech company's software business specifically is being overlooked by investors.
He expects IBM can carve out its own niche in artificial intelligence as it has in hybrid cloud enablement.
"We feel the company's software business is misunderstood, and undervalued, particularly its role in hybrid environments, AI and spend optimization," he added.
IBM 1D mountain IBM shares 1-day IBM can support businesses in their A.I.
Persons:
Matthew Swanson, Swanson, — CNBC's Michael Bloom
Organizations:
Machines, RBC Capital Markets, IBM