Morgan Stanley analyst Erik Woodring lowered the firm’s price target on IBM (IBM) to $215 from $247 and keeps an Equal Weight rating on the shares. The firm thinks Q1 numbers should move higher, but it doesn’t believe Q1 EPS moving 4% higher is “enough to reignite the IBM bull case” as software, services and quantum peers continue to de-rate and have de-rated faster than IBM over the last 90 days. Calendar year 2026 free cash flow upside “therefore becomes critical,” but it is too early for management to alter FCF guidance, the analyst added in a preview.
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