By Proactive
Publication Date: 2026-02-24 20:11:00
Wedbush analysts say the recent selloff of International Business Machines Corp (NYSE:IBM) shares is overdone and presents a buying opportunity, arguing that fears around AI-driven disruption to the company’s legacy business are being misinterpreted.
IBM stock fell 13% on Monday, its largest drop in more than 25 years, compared with about a 1% decline for the S&P 500. The move followed heightened competition concerns after Anthropic said its Claude Code tool could help modernize legacy systems that run on COBOL, a language central to IBM’s mainframe ecosystem.
Shares recovered partially on Tuesday, trading at about $230.
Wedbush maintained an ‘Outperform’ rating and a $340 12-month price target on the stock, saying the market reaction reflects a broader “sell first, ask questions later” mentality surrounding AI disruption.
The…
