By Nauman Khan
Publication Date: 2026-04-08 16:19:00
This article first appeared on GuruFocus.
Stifel cut its price target on International Business Machines (NYSE:IBM) to $290 from $340 while keeping a Buy rating on the shares.
The firm cited potential headwinds from the Gulf conflict on software and services growth, along with a meaningful foreign exchange move. The closing of the Confluent acquisition ahead of schedule was noted as a tailwind, the note showed.
Stifel revised its 2026 constant currency revenue estimate to growth of 4.5% to 5%, sitting slightly below consensus and company guidance of 5%. The firm models earnings per share of $12.38, up about 7%, and free cash flow up roughly $1 billion, or 7%, generally in line with expectations.
IBM is scheduled to report first-quarter earnings on April 22. Stifel expects an in-line quarter, noting the period is seasonally weak.
The firm does not anticipate material changes to guidance given the uncertain macroeconomic environment.
