IBM’s Price Target Cut to $215, 2026 EPS Forecast Lowered to $11.98
On April 14, Morgan Stanley cut IBM’s price target to $215 from $247, implying a 9.6% downside, while Bank of America cut 2026 EPS to $11.98 from $12.20. The Confluent acquisition is expected to add $50 million in Q1 revenue, and Citigroup maintains a $285 target citing AI growth.
1. Analyst Price Target Adjustments
Morgan Stanley reduced its IBM price target to $215 from $247, signaling a potential 9.6% downside, while Citigroup maintained a bullish outlook with a $285 target based on defensive operations and growth prospects in AI and mainframe upgrades.
2. Confluent Acquisition Revenue Impact
IBM’s early closing of the Confluent acquisition is expected to contribute roughly $50 million to first-quarter revenue, expanding the company’s hybrid cloud and data streaming capabilities.
3. EPS Forecast Revisions
Bank of America lowered its full-year 2026 EPS estimate for IBM to $11.98 from $12.20, reflecting adjustments after factoring in the Confluent deal revenue and integration costs.