Truist Securities analyst Arvind Ramnani initiates coverage on IBM (NYSE: IBM) with a Hold rating and a price target of $240.00.

The analyst comments "We are constructive on IBM's structural position in enterprise computing, but cautious on near-term execution. IBM is uniquely positioned across four key areas: the systems where a meaningful portion of the world's transaction data already resides (IBM Z), a layer that works across different AI models (watsonx Orchestrate), software that lets clients run the same application in their own data center or on any cloud (Red Hat), and a consulting arm that helps clients put AI to work. Our concern is timing: when will enterprise spending on AI infrastructure translate into demand for IBM? After the 2Q26 miss and 20%+ sell-off, the stock trades at a defensible ~17x forward earnings."

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Shares of IBM closed at $226.61 yesterday.