International Business Machines (NYSE:IBM) Given New $245.00 Price Target at Citigroup

Key Points

• Citigroup lowered its price target on IBM from $255 to $245, while keeping a buy rating on the stock. The new target still implies about 13.78% upside from IBM’s current share price.
• IBM’s latest quarterly results were mixed: it met EPS expectations at $2.93 per share but missed revenue estimates with $17.16 billion in sales. Revenue still rose 1.1% year over year, but mainframe weakness weighed on the quarter.
• Analyst sentiment remains broadly constructive, with 15 buy ratings versus 11 hold and 1 sell, and the average target price at $265.40. Recent commentary has also highlighted IBM’s AI and quantum computing strategy as a potential long-term support for the stock.

International Business Machines (NYSE:IBM - Get Free Report) had its price target reduced by research analysts at Citigroup from $255.00 to $245.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has a "buy" rating on the technology company's stock. Citigroup's price target indicates a potential upside of 13.78% from the company's current price.

Several other equities research analysts have also recently commented on the company. Piper Sandler upgraded International Business Machines to an "overweight" rating in a research note on Tuesday, June 23rd. DZ Bank upgraded shares of International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 price objective on the stock in a research report on Friday, April 24th. Oppenheimer cut shares of International Business Machines from an "outperform" rating to a "market perform" rating in a research note on Wednesday, July 15th. Barclays cut their price objective on shares of International Business Machines from $288.00 to $262.00 and set an "overweight" rating for the company in a research report on Thursday. Finally, Wedbush set a $350.00 target price on shares of International Business Machines in a report on Tuesday, June 2nd. Fifteen equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $265.40.

International Business Machines Stock Performance

Shares of IBM traded up $8.67 during mid-day trading on Friday, hitting $215.32. 7,222,363 shares of the company's stock were exchanged, compared to its average volume of 8,178,567. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. International Business Machines has a fifty-two week low of $199.19 and a fifty-two week high of $332.46. The business's 50 day moving average is $263.03 and its two-hundred day moving average is $260.82. The firm has a market capitalization of $202.38 billion, a P/E ratio of 19.09, a P/E/G ratio of 2.23 and a beta of 0.68.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.93. The firm had revenue of $17.16 billion for the quarter, compared to analysts' expectations of $17.46 billion. International Business Machines had a return on equity of 36.58% and a net margin of 15.52%.During the same quarter in the previous year, the firm posted $2.80 EPS. The firm's revenue for the quarter was up 1.1% on a year-over-year basis. On average, equities analysts expect that International Business Machines will post 12.15 earnings per share for the current year.

Institutional Trading of International Business Machines

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC boosted its position in International Business Machines by 12.4% during the fourth quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock worth $4,619,000 after acquiring an additional 2,323 shares during the last quarter. Sivia Capital Partners LLC lifted its stake in shares of International Business Machines by 10.6% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock worth $571,000 after purchasing an additional 186 shares during the period. Jump Financial LLC acquired a new stake in shares of International Business Machines during the second quarter worth $211,000. Ieq Capital LLC grew its position in shares of International Business Machines by 2.2% in the second quarter. Ieq Capital LLC now owns 38,617 shares of the technology company's stock valued at $11,383,000 after purchasing an additional 843 shares during the period. Finally, Vivaldi Capital Management LP grew its position in shares of International Business Machines by 11.6% in the second quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company's stock valued at $300,000 after purchasing an additional 106 shares during the period. Hedge funds and other institutional investors own 58.96% of the company's stock.

International Business Machines News Summary

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

• Positive Sentiment: IBM’s shares are getting some support from renewed investor interest after the post-earnings drop, with commentary pointing to a rebound in after-hours trading and optimism around IBM’s AI and quantum computing strategy.
• Positive Sentiment: IBM announced it is acquiring HRL Laboratories to strengthen its quantum computing roadmap, adding silicon-spin qubit and quantum sensing expertise that could enhance the company’s long-term growth narrative. IBM buys HRL Laboratories in shift to two-track quantum computing strategy
• Neutral Sentiment: Several articles framed IBM’s Q2 report as a “meet on EPS, miss on revenue” quarter: earnings matched estimates at $2.93 per share, but revenue came in below expectations at $17.16 billion, with weaker mainframe sales and delayed software deals pressuring results.
• Neutral Sentiment: IBM also lowered its 2026 constant-currency revenue growth outlook to 4%–5%, but management said the slowdown was driven by timing shifts in customer spending toward AI infrastructure rather than lost demand, which has helped temper bearish reactions.
• Negative Sentiment: The biggest drag on the stock remains the weak mainframe cycle: IBM said Z mainframe revenue fell sharply, and investors are worried that enterprise customers are prioritizing AI data-center spending over traditional IBM infrastructure and software.
• Negative Sentiment: Some outlets also highlighted the stock’s severe recent decline and new legal-investigation headlines, which could keep pressure on sentiment even if the company’s long-term AI and quantum story remains intact.

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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