International Business Machines (NYSE:IBM) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley raised IBM’s price target from $267 to $293 while keeping an “equal weight” rating, implying only modest upside from the stock’s recent close.
• Overall analyst sentiment on IBM remains constructive: the stock has a “Moderate Buy” consensus with an average target price of $307.72, and several firms recently adjusted ratings or targets upward.
• IBM’s latest earnings beat expectations, with EPS of $1.91 versus $1.81 expected and revenue of $15.92 billion, while the company also continues to draw attention for AI and quantum computing initiatives.

International Business Machines (NYSE:IBM - Get Free Report) had its price objective increased by Morgan Stanley from $267.00 to $293.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm presently has an "equal weight" rating on the technology company's stock. Morgan Stanley's target price would suggest a potential upside of 0.88% from the company's previous close.

Other equities research analysts also recently issued reports about the stock. Barclays started coverage on shares of International Business Machines in a research report on Monday, June 1st. They set an "overweight" rating and a $350.00 target price on the stock. Weiss Ratings downgraded shares of International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, June 24th. Bank of America lifted their price target on shares of International Business Machines from $315.00 to $330.00 and gave the stock a "buy" rating in a report on Monday, July 6th. Wolfe Research downgraded International Business Machines to a "peer perform" rating in a report on Tuesday, June 23rd. Finally, Piper Sandler raised International Business Machines to an "overweight" rating in a research report on Tuesday, June 23rd. Fifteen investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $307.72.

International Business Machines Price Performance

Shares of IBM opened at $290.46 on Tuesday. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75. The stock has a market cap of $273.00 billion, a PE ratio of 25.68, a PEG ratio of 2.78 and a beta of 0.68. International Business Machines has a 12-month low of $212.34 and a 12-month high of $332.46. The business has a 50-day simple moving average of $264.95 and a two-hundred day simple moving average of $265.82.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, topping the consensus estimate of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company had revenue of $15.92 billion for the quarter, compared to analysts' expectations of $15.60 billion. During the same period in the previous year, the business posted $1.60 earnings per share. The business's quarterly revenue was up 9.5% compared to the same quarter last year. Analysts anticipate that International Business Machines will post 12.45 earnings per share for the current fiscal year.

Institutional Trading of International Business Machines

Several hedge funds have recently modified their holdings of IBM. Norges Bank acquired a new stake in International Business Machines in the fourth quarter worth $2,446,429,000. Capital World Investors boosted its position in shares of 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 purchasing an additional 4,976,756 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its position in shares of International Business Machines by 83.4% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,617,117 shares of the technology company's stock worth $1,663,847,000 after purchasing an additional 2,553,552 shares in the last quarter. Corient Private Wealth LLC grew its stake in shares of International Business Machines by 359.6% in the 4th quarter. Corient Private Wealth LLC now owns 1,896,675 shares of the technology company's stock valued at $561,814,000 after buying an additional 1,484,026 shares during the period. Finally, Vanguard Group Inc. increased its position in 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 valued at $28,796,390,000 after buying an additional 1,439,824 shares in the last quarter. Institutional investors own 58.96% of the company's stock.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM released Arvind Krishna’s letter to investors alongside selected preliminary second-quarter 2026 financial results, giving the market an early look at performance ahead of the full earnings report. Arvind Krishna's Letter to IBM Investors
• Positive Sentiment: Several articles highlighted IBM as attractively valued, with Jim Cramer calling the stock inexpensive and praising CEO Arvind Krishna’s execution, which may reinforce investor confidence. Jim Cramer Says Buy IBM Right Now
• Positive Sentiment: Coverage around IBM’s AI and quantum initiatives, including updates to its Bob AI platform and attention on quantum tech at a Capitol Hill showcase, suggests the market is watching for long-term growth catalysts. IBM Just Unveiled Major Updates to Its Bob AI Platform
• Positive Sentiment: IBM was also featured in commentary about dividend growth and total-return potential, which can appeal to income-focused investors during volatile markets. 3 Dividend Stocks with Growth on Tap for the Second Half
• Neutral Sentiment: Some articles were more mixed, with one comparison piece saying HubSpot has a stronger AI growth profile and a lower valuation than IBM, which could temper enthusiasm somewhat. HubSpot vs. IBM
• Negative Sentiment: One report noted IBM shares had been down recently, and another asked whether IBM can stay steady through an “AI reset,” suggesting some lingering skepticism about the pace of the company’s re-rating. International Business Machines Shares Down 2.5% - What's Next?

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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