Morgan Stanley Boosts International Business Machines (NYSE:IBM) Price Target to $225.00

Key Points

• Morgan Stanley raised its price target on IBM from $215 to $225 while maintaining an "equal weight" rating, a target that implies about a 3.34% downside from the prior close.
• IBM beat Q1 estimates with EPS of $1.91 versus $1.81 and revenue of $15.92B versus $15.60B (revenue +9.5%), driven by strong mainframe/infrastructure growth, and declared a quarterly dividend of $1.69.
• Analyst views are mixed but the consensus remains a Moderate Buy with an average price target of $298.19, reflecting a wide range of recent target changes from firms such as Evercore, BofA, Jefferies and JPMorgan.

International Business Machines (NYSE:IBM - Get Free Report) had its target price hoisted by research analysts at Morgan Stanley from $215.00 to $225.00 in a note issued to investors on Thursday,Benzinga reports. The firm presently has an "equal weight" rating on the technology company's stock. Morgan Stanley's price target indicates a potential downside of 3.34% from the company's previous close.

IBM has been the subject of several other reports. Jefferies Financial Group cut their price target on shares of International Business Machines from $370.00 to $320.00 and set a "buy" rating for the company in a report on Monday. BMO Capital Markets lowered their price objective on International Business Machines from $350.00 to $290.00 and set a "market perform" rating on the stock in a research report on Thursday, March 19th. Evercore lifted their price objective on International Business Machines from $330.00 to $345.00 and gave the company an "outperform" rating in a research note on Thursday, January 29th. Bank of America upped their target price on International Business Machines from $315.00 to $335.00 and gave the stock a "buy" rating in a research note on Tuesday, January 13th. Finally, JPMorgan Chase & Co. lowered their price target on International Business Machines from $317.00 to $283.00 and set a "neutral" rating on the stock in a report on Wednesday, March 18th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $298.19.

International Business Machines Stock Performance

IBM stock opened at $232.79 on Thursday. International Business Machines has a 12-month low of $220.72 and a 12-month high of $324.90. The company has a quick ratio of 0.92, a current ratio of 0.96 and a debt-to-equity ratio of 1.67. The business has a 50 day moving average of $247.04 and a 200-day moving average of $281.21. The firm has a market cap of $218.36 billion, a PE ratio of 20.88, a P/E/G ratio of 2.68 and a beta of 0.69.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.81 by $0.10. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The business 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 EPS. The firm's quarterly revenue was up 9.5% compared to the same quarter last year. As a group, sell-side analysts expect that International Business Machines will post 12.34 earnings per share for the current year.

Insiders Place Their Bets

In other International Business Machines news, Director Michael Miebach bought 434 shares of International Business Machines stock in a transaction that occurred on Wednesday, February 25th. The shares were bought at an average price of $233.33 per share, with a total value of $101,265.22. Following the acquisition, the director owned 434 shares in the company, valued at approximately $101,265.22. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director David N. Farr purchased 1,000 shares of the stock in a transaction on Friday, January 30th. The stock was acquired at an average cost of $304.00 per share, with a total value of $304,000.00. Following the completion of the purchase, the director directly owned 9,258 shares of the company's stock, valued at $2,814,432. The trade was a 12.11% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 1,484 shares of company stock valued at $417,157 in the last ninety days. 0.27% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On International Business Machines

Several hedge funds and other institutional investors have recently modified their holdings of the company. Family CFO Inc purchased a new stake in International Business Machines in the 4th quarter worth approximately $25,000. Basepoint Wealth LLC purchased a new position in shares of International Business Machines during the fourth quarter valued at approximately $25,000. Portus Wealth Advisors LLC bought a new position in shares of International Business Machines during the first quarter valued at approximately $26,000. Mountain Hill Investment Partners Corp. bought a new position in shares of International Business Machines during the third quarter valued at approximately $28,000. Finally, Joseph Group Capital Management purchased a new stake in International Business Machines in the fourth quarter worth $28,000. 58.96% of the stock is owned by institutional investors.

Trending Headlines about International Business Machines

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

• Positive Sentiment: Q1 beat on top and bottom lines — IBM posted $1.91 EPS vs. $1.81 expected and revenue of $15.92B, driven by double‑digit software and infrastructure growth. This confirms continued demand tied to AI and hybrid‑cloud services. Read More.
• Positive Sentiment: Mainframe/infrastructure strength — IBM reported strong Z mainframe hardware growth (management cited ~51% growth) and robust infrastructure contribution, supporting recurring revenue and cash flow. Read More.
• Positive Sentiment: Dividend lifted — IBM declared a quarterly dividend of $1.69 (ex‑dividend May 8), a small increase that supports the stock’s income profile and yield (about 2.7%).
• Neutral Sentiment: Full disclosures available — The earnings call transcript and slide deck are posted for investors to drill into segment metrics and backlog/AI pipeline details. Use these to assess sustainability of AI‑related demand. Read More.
• Negative Sentiment: After‑hours selloff — Shares fell notably in after‑hours trading as investors focused on the unchanged FY‑2026 guidance and signs of slowing Red Hat Enterprise Linux growth. That reaction pressured the stock into the next session. Read More.
• Negative Sentiment: Software/consulting worries and AI disruption risk — Reports and analyst commentary flagged weaker-than-expected software revenue growth and consulting softness, reviving market fears that generative AI could disrupt legacy software monetization. Read More.
• Negative Sentiment: Analyst reaction — Some firms trimmed targets (Jefferies lowered its IBM price target while keeping a Buy), signaling valuation caution despite the beat. Read More.

International Business Machines Company Profile

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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