Argus Issues Pessimistic Forecast for International Business Machines (NYSE:IBM) Stock Price

Key Points

• Argus cut its price target on IBM from $360 to $280, though it kept a buy rating. The new target still implies about 31.9% upside from the previous close.
• Wall Street remains broadly positive on IBM despite the downgrade, with a consensus rating of Moderate Buy and an average price target of $302.72. Several firms recently reiterated or initiated bullish ratings, even as others were more cautious.
• IBM’s latest results were solid, but recent sentiment has weakened after the company reported Q2 revenue and profit below expectations and said some large deals were delayed. Analysts are also concerned that customers are shifting spending toward AI infrastructure and cybersecurity instead of traditional software.

International Business Machines (NYSE:IBM - Get Free Report) had its price objective dropped by research analysts at Argus from $360.00 to $280.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has a "buy" rating on the technology company's stock. Argus' target price points to a potential upside of 31.92% from the company's previous close.

Several other research firms have also recently commented on IBM. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of International Business Machines in a research note on Tuesday, June 23rd. Needham & Company LLC began coverage on International Business Machines in a research note on Wednesday, June 3rd. They set a "buy" rating on the stock. Morgan Stanley lifted their price objective on International Business Machines from $267.00 to $293.00 and gave the company an "equal weight" rating in a research report on Tuesday. Citigroup upped their target price on International Business Machines from $285.00 to $375.00 and gave the company a "buy" rating in a research note on Tuesday, June 2nd. Finally, Susquehanna initiated coverage on International Business Machines in a research report on Friday, July 10th. They set a "neutral" rating and a $303.00 target price on the stock. Fifteen research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, International Business Machines has a consensus rating of "Moderate Buy" and a consensus price target of $302.72.

International Business Machines Price Performance

IBM stock traded up $1.05 during trading on Thursday, hitting $212.25. The stock had a trading volume of 8,787,241 shares, compared to its average volume of 7,894,125. The stock has a market cap of $199.50 billion, a price-to-earnings ratio of 18.77, a price-to-earnings-growth ratio of 2.10 and a beta of 0.68. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The company's 50 day moving average price is $264.41 and its two-hundred day moving average price is $264.54. International Business Machines has a 1-year low of $204.44 and a 1-year high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping analysts' consensus estimates of $1.81 by $0.10. The business had revenue of $15.92 billion during the quarter, compared to the consensus estimate of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The company's quarterly revenue was up 9.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.60 earnings per share. On average, sell-side analysts forecast that International Business Machines will post 12.43 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in shares of International Business Machines by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company's stock worth $28,796,390,000 after acquiring an additional 1,439,824 shares during the period. State Street Corp raised its stake in International Business Machines by 1.0% during the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company's stock valued at $16,290,452,000 after acquiring an additional 518,321 shares in the last quarter. Geode Capital Management LLC raised its stake in International Business Machines by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company's stock valued at $6,679,105,000 after acquiring an additional 336,069 shares in the last quarter. Capital World Investors boosted its position in International Business Machines by 29.2% during the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company's stock worth $6,523,720,000 after acquiring an additional 4,976,756 shares during the period. Finally, Bank of America Corp DE grew its stake in shares of International Business Machines by 7.0% in the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company's stock worth $3,893,669,000 after purchasing an additional 1,049,602 shares in the last quarter. Institutional investors and hedge funds own 58.96% of the company's stock.

Key Stories Impacting International Business Machines

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

• Negative Sentiment: IBM said Q2 revenue and profit missed estimates, with software and infrastructure demand softer than expected. Management also said some large deals were delayed as customers reassessed spending priorities. Analysts React on IBM's Worst Day on Record: What History Says Happens Next
• Negative Sentiment: The company’s comments suggested enterprise customers are prioritizing AI infrastructure, cybersecurity, and hardware over traditional software spending, raising concern that IBM’s mix may be under pressure for longer than expected. IBM shares plunge 25% as customers shift spending to AI
• Neutral Sentiment: Several analysts and commentators are debating whether the selloff has created a long-term buying opportunity, but near-term sentiment remains cautious after one of the worst drops in IBM’s history. Why is IBM Stock Crashing, and is it a Generational Buying Opportunity?

About International Business Machines

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM's principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.

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