One technical analyst says a buying opportunity in IBM could soon present itself.
Shares of the tech company are up almost 9 percent year to date and hovering near 52-week highs. The good news for those who have missed out on the move is that the stock's chart shows an "inverted head and shoulders" pattern, according to Piper Jaffray technical analyst Craig Johnson. This is a bullish pattern that is often taken to indicate that a stock has bottomed and is on its way higher.
"It looks like to us we can see a measured objective in about the $210 range from our perspective," Johnson said Tuesday on CNBC's "Power Lunch." "So a good-looking chart, good-looking setup, and we would be buying it on a pullback or weakness here."
In other words, Johnson sees IBM, which opened Wednesday trading just below $180, running up another 17 percent.
Erin Gibbs, equity chief investment officer at S&P Global, also has an optimistic view of IBM. While she admits that "valuations are getting a little high" and they're "not expecting a huge amount of earnings growth right now," investors may find themselves delighted with the company's recently announced partnership with Salesforce.com.
On Monday, IBM and Salesforce.com agreed to combine their AI technologies to boost sales of data analytics offerings.
"This is the kind of services that we've been looking for and continued revenues coming out of these types of AI services," said Gibbs, who also appeared on "Power Lunch."
