Citigroup Initiates Coverage on International Business Machines (NYSE:IBM)

Citigroup initiated coverage on shares of International Business Machines (NYSE:IBM) in a research report issued on Friday, Marketbeat.com reports. The firm set a “buy” rating and a $285.00 price target on the technology company’s stock. Citigroup’s price objective points to a potential upside of 23.55% from the company’s current price.

IBM has been the subject of a number of other research reports. UBS Group raised shares of International Business Machines from a “sell” rating to a “neutral” rating and set a $236.00 target price for the company in a research note on Wednesday, February 25th. Oppenheimer set a $380.00 target price on shares of International Business Machines and gave the stock an “outperform” rating in a research note on Thursday, January 29th. Bank of America lifted their target price 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. DZ Bank raised shares of International Business Machines to a “hold” rating in a research note on Wednesday, February 11th. Finally, JPMorgan Chase & Co. lowered their target price on shares of International Business Machines from $317.00 to $283.00 and set a “neutral” rating for the company in a research note on Wednesday, March 18th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $309.63.

International Business Machines Price Performance

IBM stock opened at $230.68 on Friday. The company has a fifty day moving average price of $254.23 and a 200-day moving average price of $283.09. The company has a market capitalization of $216.39 billion, a P/E ratio of 20.69, a PEG ratio of 2.30 and a beta of 0.69. International Business Machines has a 52-week low of $220.72 and a 52-week high of $324.90. The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.92 and a current ratio of 0.96.

International Business Machines (NYSE:IBM) last released its quarterly earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.33 by $0.19. International Business Machines had a net margin of 15.69% and a return on equity of 38.15%. The firm had revenue of $19.69 billion during the quarter, compared to the consensus estimate of $19.23 billion. During the same quarter last year, the firm earned $3.92 earnings per share. The company’s revenue for the quarter was up 12.2% on a year-over-year basis. As a group, equities analysts expect that International Business Machines will post 10.78 EPS for the current year.

Insider Buying and Selling at International Business Machines

In related news, Director David N. Farr purchased 1,000 shares of the firm’s stock in a transaction on Friday, January 30th. The stock was purchased 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 owned 9,258 shares in the company, valued at approximately $2,814,432. This trade represents a 12.11% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Michael Miebach purchased 434 shares of the firm’s stock in a transaction on Wednesday, February 25th. The stock was bought at an average cost of $233.33 per share, with a total value of $101,265.22. Following the completion of the purchase, the director owned 434 shares of the company’s stock, valued at approximately $101,265.22. This represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders acquired 1,484 shares of company stock valued at $417,157. Insiders own 0.27% of the company’s stock.

Institutional Investors Weigh In On International Business Machines

Several hedge funds and other institutional investors have recently bought and sold shares of IBM. Norges Bank bought a new stake in International Business Machines in the fourth quarter valued at $2,446,429,000. Capital World Investors increased its stake in International Business Machines by 29.2% in the fourth quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock valued at $6,523,720,000 after purchasing an additional 4,976,756 shares in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of International Business Machines by 83.4% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,617,117 shares of the technology company’s stock valued at $1,663,847,000 after buying an additional 2,553,552 shares during the last quarter. Corient Private Wealth LLC grew its holdings in shares of International Business Machines by 359.6% during the fourth 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 last quarter. Finally, Vanguard Group Inc. grew its holdings in shares of International Business Machines by 1.5% during the fourth 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 during the last quarter. 58.96% of the stock is owned by institutional investors.

International Business Machines News Summary

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

• Positive Sentiment: Citi initiated coverage with a Buy and a $285 price target, arguing IBM has meaningful AI growth potential plus upside from its mainframe and quantum businesses — the call highlights a ~23% upside vs. current levels. Citi Analyst Upgrades IBM (IBM) Stock with $285 Target on AI Growth Potential
• Positive Sentiment: Multiple outlets and analysts echoed a bullish view (Barron’s, TipRanks/MSN coverage), noting IBM’s ability to navigate technology cycles and the potential for earnings leverage from AI and enterprise offerings — these narratives support longer-term upside despite 2026 weakness. IBM Stock Is Having Its Worst Year Since 2002. Here’s Why It Just Got a Buy Rating.
• Neutral Sentiment: IBM is participating in industry moves around AI patent sharing (the SAIL initiative), which could reshape competitive dynamics and reduce friction for model development — a longer‑term strategic development that may affect moat but has uncertain near-term revenue impact. IBM’s SAIL Move Reframes AI Patent Sharing And Long Term Moat
• Neutral Sentiment: Coverage on quantum computing ETFs and IBM’s expanded quantum roadmap highlights a structural growth story; this is positive for long-term optionality but remains developmental and unlikely to drive near-term earnings. The Quantum Computing ETF That Could Be Bigger Than AI, and 2 Tech Funds Riding the Same Wave
• Negative Sentiment: The U.S. Department of Justice said IBM will pay $17 million to settle allegations related to discriminatory DEI hiring practices — a reputational and regulatory event that adds near‑term legal cost and scrutiny (though the monetary amount is small relative to revenue). IBM to pay $17 million to settle discrimination allegations, DOJ says
• Negative Sentiment: Short-term technical and sentiment pressure: the stock has underperformed peers recently and faced at least one analyst downgrade and intraday selling, which compounds downside momentum despite bullish reports. International Business Machines (NYSE:IBM) Trading Down 1.4% Following Analyst Downgrade

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.