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.”

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.

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