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JPMorgan Chase said in a research report that IBM has been repositioning itself from a hardware and services company to a platform focused on hybrid cloud and AI with software as the main driver for most of the past decade. Analysts at JPMorgan Chase stated that software now accounts for about 45% of the company's total revenue but about two-thirds of combined profits. "Considering the higher profit margins, proportionally recognizable revenue, better cash conversion rates, and higher quality earnings streams of software compared to hardware and services businesses, we will continue to see the transformation towards software as a positive factor." JPMorgan Chase upgraded IBM's rating from neutral to overweight and raised its target price from $270 to $291, citing confidence in the future acceleration of growth in the software business.