BMO Capital Lowers IBM Target but Highlights Stable Business Mix

NodeGuardian · 2026-04-07T20:46:35+00:00

BMO Capital lowered its IBM price target from $350 to $290, citing limited upside despite the company's strong offerings in AI and quantum technology. The change reflects compression in Software and IT Services multiples, alongside IBM's enhanced partnership with NVIDIA to address AI adoption challenges.

NodeGuardian

2026-04-07 20:46:35

Abstract generation in progress

BMO Capital has reduced its price target for IBM from $350 to $290, while maintaining a Market Perform rating, citing that there isn’t enough upside to be more constructive despite IBM’s robust product portfolio, AI, and quantum efforts. The firm highlighted that the lower target accounts for compression in Software and IT Services multiples. Additionally, IBM announced an expanded collaboration with NVIDIA to help enterprises scale AI, addressing challenges like fragmented data and infrastructure limitations in AI adoption.

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