IBM (IBM) stock was up 1.5% on Tuesday at the time of writing as the tech giant has been scoring bullish reviews from Wall Street analysts. Also, the company announced today a multi-year renewal of its long-term partnership with The All England Lawn Tennis Club. Meanwhile, Jefferies analyst Brent Thill upgraded his rating for IBM stock to Buy from Hold and increased the price target to $360 from $300. Also, RBC Capital analyst Matthew Swanson boosted his price target for IBM stock to $350 from $300 and reaffirmed a Buy rating. Moreover, Melius analyst Ben Reitzes increased his price target for IBM stock to $375 from $350 and reiterated a Buy rating.
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Let’s look at the reasons for the bullish stance of these analysts on IBM stock.
Top Jefferies Analyst Turns Bullish on IBM Stock
Thill upgraded IBM stock as he now sees a “clearer path to software acceleration heading into 2026.” His bullish outlook is backed by momentum in IBM’s Red Hat business and synergies from recent deals, including HashiCorp and the pending acquisition of Confluent (CFLT).
Additionally, Thill noted that these deals bolster IBM’s hybrid cloud and data platform capabilities, build cross-sell opportunities, and expand the company’s open-source monetization potential. The 5-star analyst added that IBM’s mainframe strength provides the company with recurring revenue and further stability, driving confidence in near-term execution.
Thill noted that IBM stock trades at a P/E multiple of 26x 2027 estimates, but “still has upside on software reacceleration execution (vs. large-cap software peer average of 35x).”
RBC Capital Analyst Sees Strong Upside in IBM Stock
Swanson’s revised price target for IBM stock indicates more than 18% upside potential from current levels. The analyst expects AI benefits to become clearer in 2026 for companies that are well prepared for enterprise AI adoption. Companies that are less ready may continue to struggle, weighed down by fears that “AI is the death of software.”
He noted that enterprise spending appears to be stabilizing and improving in some areas, with generative AI fueling innovation even as management teams continue to be cautious about the early 2026 outlook.
What Is the Target Price for IBM Stock?
Overall, Wall Street has a Moderate Buy consensus rating on IBM stock based on 11 Buys, four Holds, and one Sell recommendation. The average IBM stock price target of $315.80 indicates about 5.5% upside potential from current levels. IBM stock has risen about 35% over the past year.
