Morgan Stanley Raises IBM Price Target to $267, Maintains Equal Weight

Morgan Stanley raised its price target on International Business Machines Corporation (NYSE:IBM) to $267 from $225, while maintaining an "Equal Weight" rating, according to a report by Insider Monkey.

Rating Change

Previously, the price target was $225. After the revision, it stands at $267, an increase of $42 (18.7%). The analyst kept the "Equal Weight" rating, indicating a neutral outlook relative to the market.

Analyst Rationale

The analyst noted that recent earnings from Dell and HPE show strong demand for enterprise servers, which bodes well for IBM's cloud computing and server infrastructure business. This growing demand supports future revenue expectations.

Context

IBM is considered one of the best cloud computing stocks to buy according to hedge funds, as per the report. No other analysts have commented similarly yet. The stock's recent performance was not mentioned in the source.

What to Make of It

The price target increase reflects cautious optimism about IBM, but the "Equal Weight" rating suggests the analyst does not expect significant outperformance. Investors are advised to monitor the company's quarterly results to gauge how it benefits from server demand.