IBM Secures Citi Buy Rating as It Rolls Out AI Security Tools

Overview

• Citi started coverage with a Buy and a $285 target, citing IBM’s cheaper valuation, light need for costly AI hardware, and a strong role building enterprise AI systems.
• IBM introduced two cybersecurity offerings that target AI-driven threats, including an IBM Consulting assessment that maps security gaps and a new Autonomous Security platform that uses AI agents to spot and contain attacks with less hands-on work.
• IBM says attackers now use advanced models to speed each stage of an intrusion and cut the skill and cost needed, which the company argues calls for AI-native defenses across IT, factory gear, and core business workflows.
• Stifel lowered its price target to $290 but kept a Buy, pointing to risks from the Iran conflict and softer software and services demand, while noting the Confluent acquisition could close sooner than first expected.
• Next up is Q1 earnings on April 22, with investors tracking IBM’s 2026 path after Q4 revenue grew 9% to $19.7 billion and guidance called for more than 5% revenue growth and about $1 billion more free cash flow; the stock carries a Moderate Buy consensus with a $311.29 mean target and has trailed the S&P 500 over the past year.