New York, July 6, 2026, 19:01 (EDT)
- International Business Machines Corporation finished the day up 3.45% at $299.52, marking a sixth gain in a row. In after-hours trading, IBM was quoted at $299.00.
- Analysts on Google Finance now have a $302.94 average 12-month target, just 1.14% over the last close, despite Bank of America Securities upping its target to $330.
- BofA’s latest case is about the software mix, Confluent, and free cash flow, not just IBM’s new quantum research news.
International Business Machines Corporation NYSE:IBM climbed $10.00 to close at $299.52 Monday, up 3.45%. That topped the S&P 500’s 0.72% gain and the Dow’s 0.29% rise. The move put about $9.4 billion on IBM’s market cap, using Google Finance’s figure of 939.88 million shares.
For investors, the real takeaway isn’t just the higher price target. IBM’s closing price is now just 1.14% under the average 12-month target of $302.94, and bullish analysts are widening the gap from the consensus. Google Finance data shows 12 buys and five holds, with no sells, from 17 analysts in the last three months.
| IBM target stack | Rating/action | Price target | Implied move from $299.52 |
|---|---|---|---|
| Street average | 17 analysts | $302.94 | up 1.14% |
| Bank of America Securities NYSE:BAC, Wamsi Mohan | Buy, same as July 6 | $330 | up 10.2% |
| Wedbush, Daniel Ives | Buy, kept June 26 | $350 | up 16.9% |
| Morgan Stanley NYSE:MS, Erik Woodring | Hold, kept June 24 | $267 | down 10.9% |
| J.P. Morgan Chase NYSE:JPM, Brian Essex | Buy, moved up June 23 | $291 | down 2.8% |
Bank of America Securities’ Wamsi Mohan boosted his price target on IBM to $330 from $315 while sticking with a buy rating. Mohan is looking for a “solid quarter and guidance raise” when IBM posts its Q2 numbers later this month, according to Investor’s Business Daily. Investor’s Business Daily
BofA’s target goes beyond a minor earnings move. The firm now models IBM at 21 times expected 2027 enterprise-value-to-free-cash-flow, well above the 13 times historical median in the note. Analyst Mohan credited the higher multiple to what he called an “improving growth and FCF trajectory with Red Hat.” Benzinga
| BofA July 6 forecast | New estimate | Prior/other marker | What investors will test |
|---|---|---|---|
| Q2 revenue | $18.0 bln | 3.2% organic growth estimate | IBM’s 2026 sales guidance move |
| Q2 adjusted EPS | $3.05 | — | Margins and software weighting |
| 2026 revenue | $71.4 bln | $71.1 bln BofA’s previous estimate | Impact from Confluent |
| 2026 EPS | $12.47 | $12.10 BofA’s earlier number | Free cash flow view |
| Confluent Q2 contribution | $340 mln | Closed in March | Integration pace |
IBM’s most recent outlook left the door open for BofA to push for a better forecast. Back in April, IBM posted first-quarter revenue of $15.9 billion, up 9%. Software sales climbed 11% and infrastructure was up 15%. Free cash flow came in at $2.2 billion. CEO Arvind Krishna said, “AI continues to be a tailwind.” Still, IBM stuck with its 2026 goal: over 5% constant-currency revenue growth and about $1 billion more annual free cash flow. IBM Newsroom
IBM’s other announcement Monday focused on quantum. The company said researchers at Oak Ridge National Laboratory, Cleveland Clinic and IBM used quantum computing to work out nine molecular setups of a material linked to tritium production for fusion energy. Jerry Chow, CTO of quantum-centric supercomputing at IBM, said the findings show quantum tech is “now a practical scientific tool.” IBM Newsroom
The stock didn’t move as a straight quantum trade. Volume landed at 7.17 million, short of the 65-day average of 8.56 million from MarketWatch, even after a sixth day of gains. Shares finished 9.9% off their 52-week peak of $332.46 hit in June.
This matters because now the move needs company numbers. If IBM hikes guidance, it gets a shot at the higher free-cash-flow multiple BofA uses. But if IBM sticks with April’s guidance, shares are already near Wall Street’s average target after Monday’s close and trade above a few of the latest targets.
IBM traded in the first U.S. session since the NYSE’s Independence Day holiday on Friday, July 3. After the closing bell, shares were quoted at $299.00, off 0.17%, as of 7:00 p.m. EDT. The company has July 22 as a tentative date for its Q2 earnings.
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