Shares of IBM (IBM  ) climbed in early trading on Thursday, after the company reported stronger-than-expected results for its fourth quarter.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.

BMO Capital Markets On IBM

Analyst Keith Bachman maintained a Market Perform rating while raising the price target from $155 to $210.

Although IBM delivered solid results for the fourth quarter, weakness in Software remains "our biggest question mark on the stock," Bachman said in a note. The company's full-year free cash flows were better than expected and its $12 billion guidance for fiscal 2024 was "above our and investor expectations," he added.

"Moreover, IBM guided to the low end of its mid-single-digit growth model for FY24 which implies acceleration versus FY23," the analyst further wrote.

Stifel On IBM

Analyst David Grossman reaffirmed a Buy rating while lifting the price target from $183 to $190.

IBM reported 3.3% year-on-year revenue growth, with software underperforming and infrastructure outperforming expectations, Grossman said. "PTI margins +110bp y/y reflecting cost actions (over half) and gross margin improvement (pricing, cost actions, mainframe mix)" he added.

The 2023 free cash flow figure of $11.2 billion exceeded guidance on lower capex and cash taxes, while the 2024 guidance was "reasonable," the analyst further stated.

RBC Capital Markets On IBM

Analyst Matthew Swanson reiterated an Outperform rating while raising the price target from $179 to $200.

"IBM delivered a solid quarter with FCF coming in well above consensus despite consulting and software revenue being below consensus estimates," Swanson wrote in a note. The full-year 2024 guidance was "also highlighted by FCF of ~$12B, well ahead of consensus, driven predominately by adj-EBITDA growth," he added.

"Management highlighted that the book of business around generative AI and watsonx had doubled from q/q," the analyst stated.

BofA Securities On IBM

Analyst Wamsi Mohan maintained a Buy rating while lifting the price target from $170 to $200.

"Given the strong trajectory of cash flow, we now expect IBM can deliver close to $13bn FCF in F25," Mohan said.

"F24 guidance implies next mainframe launch in F25, which sets IBM up to see next two years of strong rev growth," he added.

IBM Price Action: Shares of IBM had risen by 10.86% to $192.82 at the time of publication Thursday.