UBS upgrades IBM to Neutral on more balanced risk/reward

UBS last night upgraded IBM (IBM) to Neutral from Sell with an unchanged price target of $236. The firm says the stock’s risk/reward is more balanced going forward following the 22% selloff in 2026. The competitive risk from AI to IBM’s Z vertically integrated platform is now largely reflected in the shares, the analyst tells investors in a research note. UBS does not expect IBM to see mainframe disintermediation over the next several years given its “strong customer stickiness, customer data sovereignty and complex vertically integrated stack that provides quantum-safe encryption.”

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