Analyst Dan Ives maintains a $350 price target for IBM despite a 26% weekly decline, citing temporary Q2 headwinds.
IBM shares plunged 26% in a week after the company preannounced Q2 results well below consensus. CEO Arvind Krishna attributed the miss to IT budget shifts toward AI servers and memory shortages, alongside pressure from the z17 mainframe launch.
The stock now trades at $212.67, down sharply from its average Wall Street target of $273.75. Wedbush’s Dan Ives holds a $350 target, implying 64% upside, nearly double the consensus. IBM’s forward P/E stands at 17, with a 3% dividend yield.
Markets reacted severely to the preannouncement, with Polymarket pricing an 83% chance of another earnings miss on July 22. The drop marks IBM’s worst session since 1968, raising concerns over its AI-driven growth narrative.