The firm raised its EPS estimates for compute-exposed companies by 5%-6% amid resilient enterprise server demand and AI infrastructure growth.
Morgan Stanley increased its price target on IBM shares to $267 from $225 while maintaining an “Equal Weight” rating. The move follows stronger-than-expected enterprise server demand, driven by compute shortages, refresh cycles, and rising AI infrastructure needs despite price hikes.
The firm adjusted its EPS estimates upward by 5%-6% for compute-exposed companies, citing underestimations for 2026 and 2027. Separately, JPMorgan upgraded IBM to “Overweight” with a $291 target, citing confidence in software acceleration for H2 2026.
IBM, a provider of integrated solutions and services, remains a focus for investors amid broader AI-driven market shifts.