Bernstein and Stifel Lift IBM Price Targets After Q4 Results

International Business Machines Corporation (NYSE:IBM) is one of the 10 Best AI Software Stocks to Buy Right Now. On January 30, Bernstein analyst Mark C. Newman increased the price target on International Business Machines Corporation (NYSE:IBM) from $280 to $330 and kept a Market Perform rating after the company reported its fourth-quarter results.

The analyst noted that although International Business Machines Corporation (NYSE:IBM) has significant exposure to software and consulting sectors that could be pressured by AI-driven devaluation, the company’s valuation “has been remarkably resilient and continues to expand.” Bernstein’s updated sum-of-the-parts analysis indicates that “part of the long-term upside from IBM’s nascent Quantum business is already in the stock.”

Bernstein and Stifel Lift IBM Price Targets After Q4 Results

On January 29, Stifel also raised its price target on International Business Machines Corporation (NYSE:IBM) from $325 to $340 and kept its Buy rating following the company’s fourth-quarter 2025 performance.

International Business Machines Corporation’s (NYSE:IBM) free cash flow stood out as a key positive. The company delivered a $0.7 billion, or 10%, outperformance in the quarter. The guidance for 2026 free cash flow also came in about $0.7 billion, or 4-5%, above market expectations.

The stock traded higher in pre-market trading and Stifel noted that it is now trading at around a 35% premium to the equal-weight S&P 500, in line with its trend over the past twelve months.

International Business Machines Corporation (NYSE:IBM) is an American multinational technology and software company that specializes in AI, software products, IT infrastructure, and consulting services.

While we acknowledge the potential of IBM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IBM and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.