NEW YORK (TheStreet) --Shares of IBM (IBM) were climbing in early morning trading on Thursday, after getting an upgrade to "buy" from "neutral" at Bank of America/Merrill Lynch today.

"What an upgrade, this is a very bullish call," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.

Substantial investments in M&A and restructuring are poised to come to fruition, powering IBM forward, Merrill Lynch's Wamsi Mohan said in a report. "IBM has multiple levers to drive earnings growth in 2017," Mohan said. 

"They're saying the number cuts are done," Cramer noted. "The amazing thing is negative revisions." 

IBM has stabilized its earnings, resulting in unlikely significant negative revisions.

Negative revisions seemed to have become synonymous with IBM, "maybe that's over," Cramer stated. 

Moreover, Cramer believes that should IBM get back and stay on track it could become a key player in the tech space.

"IBM, not really regarded as a tech anymore, which I think is a mistake. I think it is a tech company. Its cognitive, maybe not as much social or mobile as people want, but it does have analytics," Cramer noted.

"IBM can be a bit of a new bell cow here, if they really get it right," he said. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

The team rates IBM as a Buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its solid stock price performance and notable return on equity. The team feels its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

You can view the full analysis from the report here: IBM


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