HSBC Downgrades IBM (IBM) to Reduce, 'Stretched Valuation'

HSBC analyst Abhishek Shukla downgraded IBM (NYSE: IBM) from Hold to Reduce with a price target of $191.00 (from $231.00).

The analyst comments "Stretched valuation: IBM is trading at 22.0x CY27e non-GAAP PE (sector median: 16.9x). We expect IBM’s non-GAAP EPS to rise by a CAGR of 10.7% over CY26-28e (sector median 19.2%). Our TP of USD191 (previously USD231) is based on our sum of the parts valuation. Our TP implies 33.6% downside for current levels; accordingly, we downgrade our rating on the stock to Reduce (from Hold). See page 16 for full valuation and key upside risks."

For an analyst ratings summary and ratings history on IBM click here. For more ratings news on IBM click here.

Shares of IBM closed at $290.23 yesterday.

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