By Khac Phu Nguyen
Publication Date: 2026-10-16 11:42:00
IBM, the enterprise software, infrastructure and AI-services group IBM, traded at $232.75, up about 2.13%, around 1:22 p.m. ET on October 15, as investors weighed Morgan Stanley’s higher price target against an unchanged Equal Weight rating. The bank raised its target to $238 from $190—a 25.3% jump. That sounds punchy. But the revised target leaves only about 2.3% upside from the share price.
Morgan Stanley expects broadly in-line quarterly results, with infrastructure helping cushion sluggish consulting growth, according to The Fly’s report on the update. Cash generation supplies the tougher test. IBM’s July 22 release put first-half free cash flow at $4.8 billion, flat from a year earlier, while maintaining an outlook for roughly $1 billion of full-year improvement. That leaves the second half carrying essentially the entire planned increase.
The valuation picture shows shares 4.35% below the $243.33 GF Value estimate—a modest cushion that leaves limited room for…
