UBS Upgrades IBM Rating to Neutral, Lifts Target 15% to $155
UBS upgraded IBM’s rating to Neutral from Sell and raised its price target by 15% to $155, citing accelerating cloud and AI revenue growth and margin expansion. IBM shares jumped about 2% in early trading following the revision.
1. UBS Rating Upgrade
UBS shifted its rating on IBM from Sell to Neutral, marking a strategic shift in its view of the stock. Alongside the rating change, the firm increased its 12-month price target by 15% to $155, reflecting newfound confidence in the company’s outlook.
2. Analyst Rationale
Analysts cited IBM’s accelerating cloud revenue, expanding AI services pipeline and improving margin profile as key drivers behind the upgrade. They highlighted stronger-than-expected bookings in hybrid cloud and pipeline gains in Watson and consulting units.
3. Market Reaction
Following the UBS revision, IBM shares climbed approximately 2% in early U.S. trading, signaling investor approval of the more constructive outlook. Trading volume also spiked above the 30-day average as traders adjusted positions in response to the new rating.