International Business Machines (NYSE:IBM) Stock Price Target Raised at Morgan Stanley

Key Points

• Morgan Stanley raised IBM’s price target from $190 to $238 while maintaining an “equal weight” rating, implying approximately 2.22% upside from the prior close.
• IBM shares rose 2.2% to $232.82, with a market capitalization of about $219.35 billion. The stock remains below its 52-week high of $332.46.
• Analysts collectively maintain a “Moderate Buy” rating, with an average price target of $254.96; IBM’s latest quarterly earnings matched estimates at $2.93 per share, while revenue fell short of expectations.

International Business Machines (NYSE:IBM - Get Free Report) had its price objective boosted by equities research analysts at Morgan Stanley from $190.00 to $238.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage presently has an "equal weight" rating on the technology company's stock. Morgan Stanley's target price indicates a potential upside of 2.22% from the company's previous close.

IBM has been the subject of a number of other reports. KeyCorp cut International Business Machines to a "sector weight" rating in a research note on Tuesday, June 23rd. Wolfe Research lowered International Business Machines to a "peer perform" rating in a research note on Tuesday, June 23rd. Sanford C. Bernstein dropped their target price on International Business Machines from $280.00 to $230.00 and set a "market perform" rating for the company in a research report on Thursday, July 23rd. Citigroup cut their price target on shares of International Business Machines from $255.00 to $245.00 and set a "buy" rating on the stock in a research note on Friday, July 24th. Finally, Truist Financial started coverage on shares of International Business Machines in a research report on Friday, October 9th. They set a "hold" rating and a $240.00 price target on the stock. Nineteen equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, International Business Machines presently has an average rating of "Moderate Buy" and an average target price of $254.96.

International Business Machines Trading Up 2.2%

NYSE:IBM traded up $4.94 on Thursday, hitting $232.82. The stock had a trading volume of 2,173,211 shares, compared to its average volume of 7,456,948. The company has a fifty day moving average price of $232.07 and a two-hundred day moving average price of $243.68. International Business Machines has a 1-year low of $199.19 and a 1-year high of $332.46. 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 stock has a market cap of $219.35 billion, a price-to-earnings ratio of 20.68, a PEG ratio of 2.20 and a beta of 0.73.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting the consensus estimate of $2.93. The firm had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business's revenue for the quarter was up 1.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.80 EPS. Equities research analysts expect that International Business Machines will post 12.33 earnings per share for the current fiscal year.

Insider Buying and Selling at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the completion of the transaction, the senior vice president owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.27% of the company's stock.

Hedge Funds Weigh In On International Business Machines

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

Key International Business Machines News

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

• Positive Sentiment: Siemens partnership strengthens IBM’s semiconductor pipeline. Siemens will contribute electronic design automation, process simulation, lithography optimization and manufacturing-software expertise to IBM’s angstrom-scale nanostack transistor research. The collaboration could improve IBM’s ability to develop and eventually commercialize future chip architectures, although the financial impact is likely long term. IBM and Siemens Collaborate on Research to Advance Nanostack Architecture
• Positive Sentiment: RBC reaffirmed its Outperform rating. The analyst endorsement may help limit downside by signaling confidence in IBM’s business prospects and valuation following the recent sell-off. IBM Stock Rating Reaffirmed as Outperform by Royal Bank of Canada
• Neutral Sentiment: AI governance research highlights a growing enterprise opportunity but also implementation risks. IBM reported that 80% of surveyed EMEA executives had escalated an AI incident to the board or C-suite, while only 37% said their governance systems were ready for autonomous AI agents. The findings could support demand for IBM’s consulting, security and governance services, but also underscore the risks facing customers adopting AI. IBM Study on AI Governance
• Neutral Sentiment: Q3 earnings are the immediate catalyst. Investors will assess whether AI and hybrid-cloud growth can offset competition, margin pressure and IBM’s premium valuation. Analysts expect earnings growth, but recent previews question whether IBM has the combination of revenue momentum and operating performance needed to exceed expectations.
• Negative Sentiment: Cash-flow quality is drawing scrutiny. IBM reported first-half operating cash flow of $7.77 billion, up from $6.07 billion, but nearly all of the improvement came from changes in financing receivables. Investors may remain concerned that sustainable cash generation depends more on profitable software and consulting growth than on collecting customer balances. IBM Customer Financing and Cash Recovery

International Business Machines Company Profile

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM's portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.

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