IBM shares tumbled Thursday after a broad wave of Wall Street downgrades hit the tech giant, with five major firms cutting their price targets by an average of 9.1%. The stock closed down 9.2% at $228.74 on volume of 9.7M shares, shaving billions off its $217.6B market capitalization.
The selloff was triggered by coordinated analyst action across the Street. Wedbush trimmed its target from $340 to $320 while maintaining an Outperform rating. Evercore ISI Group slashed its target from $345 to $310, also keeping an Outperform stance. BMO Capital cut from $290 to $270 with a Market Perform rating. Jefferies reduced its target from $370 to $320 while holding a Buy rating, and RBC Capital lowered its outlook from $361 to $330 with an Outperform rating. The new average price target across the five firms now sits at $310, representing potential upside from current levels but a meaningful retreat from prior expectations.
The synchronized downgrades suggest mounting concern among analysts about IBM’s near-term prospects. While all five firms maintained constructive ratings—none moved to a sell recommendation—the size and scope of the target reductions reflect a recalibration of expectations for the information technology services provider. The action comes as the technology sector faces broader scrutiny, though the specific drivers behind each firm’s decision were not immediately detailed in the available data.
Trading volume reflected heightened investor concern. The 9.7M shares that changed hands Thursday captured the market’s reaction to the cluster of downgrades, as shareholders digested the revised outlooks from multiple respected research shops simultaneously.
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