Morgan Stanley Raises PT on International Business Machines (IBM) Stock

June 28, 2026 - 08:49

Morgan Stanley has increased its price target for International Business Machines (IBM) shares, signaling renewed confidence in the company's position within the cloud computing market. The financial firm raised its price objective on IBM stock to $267 from $225, while keeping an "Equal Weight" rating on the shares. The adjustment came on June 23, following a review of recent earnings reports from competitors like Dell and Hewlett Packard Enterprise.

According to the analyst behind the update, the earnings from Dell and HPE highlight a growing demand for enterprise servers, which bodes well for IBM. This demand is a key indicator that businesses are continuing to invest in infrastructure needed for cloud and hybrid cloud solutions. IBM has been focusing heavily on its hybrid cloud strategy, particularly through its Red Hat acquisition, aiming to capture a larger share of the market as companies shift workloads away from public-only cloud models.

The revised price target suggests that Morgan Stanley sees potential for IBM to benefit from this trend, even as the stock faces competition from other major tech players. While the "Equal Weight" rating implies a neutral stance relative to the broader market, the higher target reflects a more favorable view of the company's near-term prospects. Investors are watching closely to see if IBM can sustain its momentum in the cloud space, which remains a critical growth area for the legacy tech giant.