Royal Bank Of Canada Has Lowered Expectations for International Business Machines (NYSE:IBM) Stock Price

Key Points

• Royal Bank of Canada cut its price target on IBM from $330 to $300 but kept an "outperform" rating, with the $300 target implying roughly a 31.85% upside from the stock's current price.
• Analysts are mixed but overall view is a Moderate Buy: the MarketBeat consensus price target is $294.41, with individual targets and ratings ranging from equal-weight/hold to buy across firms.
• IBM recently beat quarterly estimates with EPS of $1.91 (vs. $1.81 expected) and revenue of $15.92B (+9.5% YoY), while the stock traded around $227.54 and the company has a market cap near $213.9B.

International Business Machines (NYSE:IBM - Get Free Report) had its price objective reduced by Royal Bank Of Canada from $330.00 to $300.00 in a report issued on Wednesday,Benzinga reports. The firm presently has an "outperform" rating on the technology company's stock. Royal Bank Of Canada's price objective indicates a potential upside of 31.85% from the company's current price.

A number of other research firms also recently commented on IBM. Morgan Stanley raised their price objective on International Business Machines from $215.00 to $225.00 and gave the stock an "equal weight" rating in a report on Thursday, April 23rd. Oppenheimer dropped their target price on shares of International Business Machines from $380.00 to $320.00 and set an "outperform" rating for the company in a research report on Thursday, April 16th. Wall Street Zen cut shares of International Business Machines from a "buy" rating to a "hold" rating in a research report on Sunday, January 11th. Bank of America boosted their price objective on shares of 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, Weiss Ratings reissued a "buy (b)" rating on shares of International Business Machines in a research report on Tuesday, April 21st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $294.41.

International Business Machines Trading Down 0.7%

NYSE IBM traded down $1.49 during trading hours on Wednesday, hitting $227.54. 2,373,892 shares of the company's stock were exchanged, compared to its average volume of 5,896,278. 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 firm has a market capitalization of $213.86 billion, a P/E ratio of 20.07, a price-to-earnings-growth ratio of 2.38 and a beta of 0.58. The business's 50 day moving average is $242.95 and its 200-day moving average is $278.53. International Business Machines has a 12-month low of $220.72 and a 12-month high of $324.90.

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 for the quarter, topping the consensus estimate of $1.81 by $0.10. The business had revenue of $15.92 billion for the quarter, compared to analyst estimates 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 revenue was up 9.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.60 EPS. As a group, analysts anticipate that International Business Machines will post 12.38 EPS for the current fiscal year.

Insider Activity at International Business Machines

In other International Business Machines news, Director Michael Miebach purchased 434 shares of International Business Machines stock in a transaction that occurred on Wednesday, February 25th. The stock was purchased at an average price of $233.33 per share, with a total value of $101,265.22. Following the completion of the acquisition, the director owned 434 shares of the company's stock, valued at approximately $101,265.22. This trade represents a ∞ increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 0.27% of the company's stock.

Hedge Funds Weigh In On International Business Machines

A number of institutional investors have recently made changes to their positions in IBM. PeakShares LLC lifted its position in shares of International Business Machines by 38.4% during the first quarter. PeakShares LLC now owns 4,516 shares of the technology company's stock worth $1,095,000 after purchasing an additional 1,252 shares during the last quarter. Angeles Wealth Management LLC increased its holdings in International Business Machines by 10.2% in the first quarter. Angeles Wealth Management LLC now owns 5,115 shares of the technology company's stock valued at $1,240,000 after buying an additional 474 shares during the last quarter. Financiere des Professionnels Fonds d investissement inc. raised its stake in International Business Machines by 40.0% during the first quarter. Financiere des Professionnels Fonds d investissement inc. now owns 700 shares of the technology company's stock valued at $170,000 after buying an additional 200 shares in the last quarter. Goodman Financial Corp lifted its holdings in International Business Machines by 62.3% during the 1st quarter. Goodman Financial Corp now owns 47,534 shares of the technology company's stock worth $11,522,000 after buying an additional 18,247 shares during the last quarter. Finally, SteelPeak Wealth LLC lifted its holdings in International Business Machines by 459.7% during the 1st quarter. SteelPeak Wealth LLC now owns 34,167 shares of the technology company's stock worth $8,282,000 after buying an additional 28,063 shares during the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM Consulting expanded its enterprise AI offerings (IBM Enterprise Advantage and internal platform updates) designed to accelerate hybrid-AI deployments for regulated and large-enterprise clients — a revenue-growth and services-margin story if adoption scales. IBM Consulting Expands AI Capabilities to Accelerate Enterprise Transformation
• Positive Sentiment: Think 2026 product launches (watsonx Orchestrate updates, IBM Sovereign Core, IBM Concert, real‑time data integrations) position IBM as a vendor for enterprise AI operating models and digital sovereignty — useful for recurring software & platform revenue. Think 2026: IBM Delivers the Blueprint for the AI Operating Model as the AI Divide Widens
• Positive Sentiment: IBM and Aramco sign an intended collaboration to accelerate AI, agentic AI, automation and materials science in Saudi Arabia — a large industrial partnership that could drive consulting, cloud and edge work. IBM and Aramco Explore Collaboration to Accelerate AI and Innovation Across Saudi Arabia
• Positive Sentiment: Quantum milestone: IBM and partners simulated a 12,635-atom protein — a demonstration that strengthens IBM’s positioning in commercial quantum computing and potential future revenue streams from scientific customers. Cleveland Clinic, RIKEN, and IBM Model a 12,635-Atom Protein - the Largest Known to Be Simulated with Quantum Computers
• Positive Sentiment: HSBC upgraded IBM based on quantum business valuation upside, signaling some analysts expect meaningful long-term value from IBM’s quantum roadmap. HSBC Upgrades International Business Machines Corporation (IBM) on Quantum Business Valuation
• Neutral Sentiment: J.P. Morgan reiterated a Hold, balancing AI and quantum upside against ongoing execution risks — a reminder that adoption and margin recovery must prove out before upgrades follow. Hold Rating Reiterated on IBM as Analyst Balances AI and Quantum Upside Against Ongoing Execution Risks
• Neutral Sentiment: CEO Arvind Krishna urged a "Goldilocks" approach to AI regulation — pro-innovation but cautious on overreach; policy outcomes remain a variable for enterprise AI spending and vendor positioning. IBM CEO Arvind Krishna warns Washington must find 'Goldilocks' middle ground on AI regulation

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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