JPMorgan Upgrades IBM on Stronger Software Growth Expectations

JPMorgan Upgrades IBM on Stronger Software Growth Expectations Vardah Gill Thu, June 25, 2026 at 5:31 AM GMT+2 2 min read IBM International Business Machines Corporation (NYSE: IBM ) is included among the Top 10 Blue Chip Stocks with Growing Dividends . JPMorgan Upgrades IBM on Stronger Software Growth Expectations On June 23, JPMorgan upgraded International Business Machines Corporation (NYSE:IBM) to Overweight from Neutral. It also raised its price target on the stock to $291 from $270.

The upgrade follows the firm's analysis of IBM's software business, which increased its confidence in stronger software growth during the second half of 2026. In a research note, analyst Brian Essex said IBM is benefiting from migration tailwinds related to Red Hat and OpenShift, as well as growing demand for OpenShift driven by increased AI-related container adoption. Essex also pointed to a rebound in automation, noting that HashiCorp is beginning to "tap increasing C-suite sponsorship.

" JPMorgan believes IBM could see further valuation expansion if the company "gains incremental traction as a substantial AI infrastructure beneficiary. " Also on June 23, Morgan Stanley raised its price recommendation on IBM to $267 from $225. It reiterated an Equal Weight rating on the shares.

The firm said recent earnings reports from Dell and HPE showed that enterprise server demand remains stronger than expected despite significant price increases. According to the analyst, compute shortages, hardware refresh cycles, and growing AI infrastructure requirements continue to support demand. Morgan Stanley added that Wall Street estimates for 2026 and 2027 "look too low.

" As a result, the firm increased its earnings-per-share estimates by 5% to 6% for companies with significant exposure to compute-related markets. International Business Machines Corporation (NYSE:IBM) is a provider of global hybrid cloud, artificial intelligence (AI), and consulting services. The company operates through four segments: Software, Consulting, Infrastructure, and Financing.

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