The opinion of the company International Business Machines Corp. IBM) the stock market lost $55 billion on Tuesday, receiving its first sell-off in three months from a top Wall Street analyst.
Stephen Bersey, equity analyst at HSBC Holdings PLC ADR (NYSE: HSBC), downgraded IBM stock to a ‘Sell’ rating on July 14. Bersey lowered his 12-month target price for IBM shares to $191 from $231, thus indicating a downside risk of about 14.4%.
“The analyst is negative on IBM due to its relative volume and expected EPS growth, resulting in a ‘Reduce’ rating,” a note to clients. he realized.
An HSBC analyst argued that IBM property The valuation has increased, as it is trading at 22 times its estimated 2027 Non-General Accepted Accounting Principles (non-GAAP) price-to-earnings (P/E), above the sector’s median of 16.9 times. The company also expects the company’s non-GAAP earnings per share (EPS) to grow at a compound annual growth rate (CAGR) of 10.7% between calendar years 2026 and 2028, well below the quarter’s average of 19.2%.
As such, Bersey expects IBM’s stock to experience some difficult sales over the next 12 months.
The price of IBM shares
Earlier in the day, Erik Woodring, chief Wall Street analyst at Morgan Stanley (NYSE: MS), issued IBM stock. However, Woodring raised his 12-month price target on IBM to $293 from $267.
Meanwhile, Param Singh, analyst at Oppenheimer, reiterated Buy on IBM shares on Tuesday. In addition, Singh raised his 12-month price target to $350 from $320, indicating a 56.7% upside.
Likewise, 18 Wall Street professionals he was asked in TipRanks set a moderate Buy rating for IBM stock. Accordingly, analysts see the company’s shares rising to around $303.83 in the next 12 months.
Opinions on IBM shares
Amid Bersey’s comments, IBM’s share price fell 26% in five days, trading at around $221.81 at press time. The increase in the past 24 hours was extended after the company reported lower-than-expected earnings due to weakness in the software and software business, according to the first quarter of 2026. results.
The notable sell-off of IBM shares today comes amid predictions of an AI market meltdown, according to Finbold. report. Predictions of an AI boom for 2026 were tempered after the Fed indicated that the AI boom has increased inflation.
Similarly, HSBC’s 12-month forecast for International Business Machines stock can be identified as an AI market crash, and vice versa.
