The bus 'Olli', an autonomous transportation system, is presented at the IBM stand at the CeBIT 2017 Technology Trade Fair in Hanover, Germany.

IBM’s cloud, analytics and security segments should easily offset declines in its legacy business and present a buying opportunity for investors looking for sustainable revenue growth, according to one analyst.

Nomura Instinet's Jeffrey Kvaal initiated coverage on the technology company with a buy rating and set a 12-month price target of $160, implying more than 16 percent upside from Wednesday’s close.

“Robust enterprise relationships, history in mission-critical applications, and strong professional services business make IBM singularly qualified to help enterprises adopt complex hybrid and multi-cloud networks,” Kvaal said in a note to clients. “We believe the IBM Cloud has a sustainable role, particularly in highly regulated industries.”