By Kim Khan
Slack Technologies (NYSE:WORK) jumped sharply Monday on a report that IBM (NYSE:IBM) is switching to its workplace messaging and communications software.
The stock popped 14% in afternoon trading.
Dow component IBM will have 350,000 employees using Slack, becoming the company’s biggest customer, Business Insider reported.
The stock has been getting votes of confidence from Wall Street of late.
Last week RBC capital markets initiated coverage of the stock with an outperform rating and a price target of $25.
“While the simplistic take on Slack is that it is ‘just another workplace chat tool,’ we believe that the vision around becoming the primary system of engagement for all employees inside (and increasingly outside) an organization creates a positive data feedback loop (more engagement - more data - more insights to drive better results - more engagement) and significant long-term value,” RBC analyst Alex Zukin wrote in an note, according to Briefing.com.
Also last week, Robert W. Baird put the stock on its Fresh Pick list.
