IBM Price Target Lowered by $30

With an annual dividend yield of 3.02%, International Business Machines Corporation (NYSE:IBM) is included among the 12 Best Blue Chip Dividend Stocks to Buy Now.

IBM Price Target Lowered by $30

International Business Machines Corporation (NYSE:IBM) is a provider of global hybrid cloud and AI and consulting expertise.

On May 7, RBC Capital trimmed its price target on International Business Machines Corporation (NYSE:IBM) from $330 to $300, while maintaining an ‘Outperform’ rating on the shares. The lowered target still indicates an upside potential of over 30% from the current price levels.

The move comes after RBC Capital attended IBM’s Think user conference, where the company’s management provided a revised strategic outlook, centered on its core pillars of hybrid cloud and AI, as well as the emerging quantum computing business. Moreover, the analyst added that the price target cut reflects peer multiple compression.

International Business Machines Corporation (NYSE:IBM) reported its Q1 2026 results last month, with the company delivering a revenue growth of 6%, adjusted EBITDA growth of 17%, and free cash flow growth of 13% compared to last year. Given the strong performance, the company remains confident in delivering constant currency revenue growth of over 5% and free cash flow growth of about $1 billion in full-year 2026.

While we acknowledge the risk and potential of IBM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IBM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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