JPMorgan Upgrades IBM to Overweight, Raises Price Target to $291

According to JPMorgan, on Tuesday premarket, the bank upgraded IBM to Overweight from Neutral and raised its price target to $291 from $270. Analyst Brian Essex cited expected software acceleration in the second half of 2026 and confidence in IBM's ability to benefit from growing AI demand. Morgan Stanley also raised its price target on IBM to $267 from $225, representing an 18% increase.

IBM is positioned to benefit from U.S. quantum computing initiatives, including Trump administration directives signed at the White House to accelerate domestic quantum computing development by 2028 and enhance federal cybersecurity defenses with quantum technology by 2031.