Morgan Stanley Lowers PT on International Business Machines Corporation (IBM) Stock

International Business Machines Corporation (NYSE:IBM) is one of the Best Automation Stocks to Buy According to Analysts.

On February 25, Morgan Stanley analyst Erik Woodring reduced the firm’s price objective on the company’s stock to $247 from $304, while keeping an “Equal Weight” rating, as reported by The Fly.

The firm highlighted AI disruption risk entering the debate after the Claude Code tool release. Morgan Stanley believes that there is a need to distinguish between the new tool, which might make COBOL modernization easier, cheaper, or faster compared to the stickiness of the International Business Machines Corporation (NYSE:IBM)’s mainframe.

The firm maintained its “Equalweight” rating, considering the lack of conviction, even though the risk-reward remains positively skewed. It noted the sustained software reacceleration, FCF upside, or quantum developments as critical catalysts for the re-rating.

In a different release, on February 24, UBS upgraded the company’s stock to “Neutral” from “Sell,” setting a price objective of $236. This upgrade demonstrates the more balanced view of the stock after the recent volatility, as well as a change in expectations.

International Business Machines Corporation (NYSE:IBM) provides hybrid cloud, artificial intelligence, and consulting services.

While we acknowledge the potential of IBM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best FMCG Stocks to Invest In According to Analysts and 11 Best Long-Term Tech Stocks to Buy According to Analysts.

Disclosure: None. Follow Insider Monkey on Google News.