International Business Machines (NYSE:IBM) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Key Points

• JPMorgan raised IBM’s price target from $250 to $269 and maintained an “overweight” rating, implying 10.46% upside. Analysts overall give IBM a “Moderate Buy” consensus rating with an average target of $262.52.
• IBM exceeded quarterly expectations, reporting $2.95 in EPS and $17.10 billion in revenue, with revenue up 4.7% year over year. Growth was led by software and infrastructure, and the company raised its full-year free-cash-flow and software-revenue outlooks.
• Despite the earnings beat, investors remain cautious because IBM kept its 4%–5% constant-currency revenue-growth outlook, cited narrower gross margins, and warned that lower-cost open-weight AI models could limit spending on premium AI infrastructure and services.

International Business Machines (NYSE:IBM - Get Free Report) had its price objective lifted by equities research analysts at JPMorgan Chase & Co. from $250.00 to $269.00 in a research note issued on Thursday, Benzinga reports. The firm presently has an "overweight" rating on the technology company's stock. JPMorgan Chase & Co.'s price target suggests a potential upside of 10.46% from the company's current price.

Several other research firms also recently weighed in on IBM. Barclays reissued an "overweight" rating and set a $277.00 price target on shares of International Business Machines in a research report on Thursday. Evercore reduced their price objective on International Business Machines from $310.00 to $250.00 and set an "outperform" rating on the stock in a research report on Thursday, July 16th. UBS Group set a $243.00 price objective on International Business Machines in a research report on Thursday. Truist Financial assumed coverage on shares of International Business Machines in a research note on Friday, October 9th. They issued a "hold" rating and a $240.00 target price for the company. Finally, Yorkville Ives assumed coverage on shares of International Business Machines in a report on Monday, October 5th. They issued an "outperform" rating and a $275.00 target price on the stock. Twenty analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $262.52.

International Business Machines Price Performance

Shares of IBM traded down $7.93 during mid-day trading on Thursday, reaching $243.53. 3,222,165 shares of the company's stock were exchanged, compared to its average volume of 7,442,195. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The company has a 50-day simple moving average of $232.36 and a two-hundred day simple moving average of $243.60. International Business Machines has a 52-week low of $199.19 and a 52-week high of $332.46. The company has a market cap of $229.43 billion, a price-to-earnings ratio of 21.76, a PEG ratio of 2.32 and a beta of 0.73.

International Business Machines (NYSE:IBM - Get Free Report) last posted its earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.85 by $0.10. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%. The firm had revenue of $17.10 billion for the quarter, compared to analyst estimates of $16.82 billion. During the same quarter in the prior year, the company earned $2.65 EPS. International Business Machines's revenue was up 4.7% on a year-over-year basis. On average, sell-side analysts predict that International Business Machines will post 12.34 EPS for the current fiscal year.

Insider Buying and Selling at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the transaction, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. This represents a 34.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.27% of the stock is currently owned by insiders.

Institutional Investors Weigh In On International Business Machines

Institutional investors have recently bought and sold shares of the stock. Harborfront Financial Group LLC purchased a new stake in shares of International Business Machines during the 2nd quarter valued at $27,000. Hara Capital LLC purchased a new position in shares of International Business Machines in the 2nd quarter worth $28,000. Bare Financial Services Inc raised its position in shares of International Business Machines by 114.6% in the 2nd quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock worth $29,000 after buying an additional 55 shares during the period. Portus Wealth Advisors LLC purchased a new position in shares of International Business Machines in the 1st quarter worth $26,000. Finally, Caitlin John LLC acquired a new position in International Business Machines in the second quarter valued at $35,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

More International Business Machines News

Here are the key news stories impacting International Business Machines this week:

• Positive Sentiment: IBM reported third-quarter adjusted earnings of $2.95 per share and revenue of $17.10 billion, exceeding analyst expectations of approximately $2.85–$2.88 per share and $16.82 billion in revenue. Revenue increased 4.7% year over year, while net income rose to $2.2 billion. IBM Releases Third-Quarter Results
• Positive Sentiment: Growth was led by software, up 8% to $7.8 billion, and infrastructure, up 4% to $3.7 billion. IBM also raised its full-year free-cash-flow outlook, expecting growth of more than $1 billion from the prior year, and raised its annual software revenue outlook as delayed deals began to close. IBM Raises Annual Software Revenue Outlook
• Positive Sentiment: Stifel Nicolaus raised its IBM price target from $235 to $260 and maintained a Buy rating. Robert W. Baird also lifted its target to $260, although it retained a Neutral rating.
• Positive Sentiment: IBM declared a quarterly dividend of $1.69 per share, equivalent to a $6.76 annualized payout and an indicated yield of about 2.7%.
• Neutral Sentiment: IBM expanded its AI-powered fan-experience features with Scuderia Ferrari HP ahead of the United States Grand Prix, providing additional product visibility but likely limited near-term financial impact. IBM and Scuderia Ferrari HP Expand AI-Powered Fan Experience
• Negative Sentiment: CEO Arvind Krishna’s comments that open-weight AI models can deliver roughly 90% of frontier-model performance at about 10% of the cost raised concern that customers may not spend aggressively on premium AI infrastructure and services. That caution overshadowed the earnings beat and pressured other AI-related technology shares.
• Negative Sentiment: IBM kept its full-year constant-currency revenue-growth outlook at 4%–5%, while management acknowledged a narrower-than-expected gross margin. Investors also remain sensitive to the company’s previous-quarter earnings disappointment and the risk that AI enthusiasm may not translate into rapid revenue growth.

About International Business Machines

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.

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