IBM Bounces Back After Upgrade, Defense Contract

Tech hardware icon IBM Common Stock (NYSE:IBM) is trading 1.6% higher at $233.02 this morning, after an upgrade out of UBS to "neutral" from "sell" and a price target set at $236. The firm cited a more balanced risk-reward skew for the tech giant, despite recent AI volatility. The stock is shrugging off a price-target cut to $247 from $304 at Morgan Stanley, amid concerns that Anthropic's Claud could disrupt IBM's mainframe business. IBM also secured a $112 million Defense Commissary Contract

On Monday, IBM shed 13% and traded as low as $220, its lowest level since an April, amid broader AI disruption concerns that caused Wedbush to remove the stock from its Best Ideas list a day later. IBM has shed more than 28% from its Nov. 12 record high of $324.90, and is still 20% lower year to date. 

After Monday's rout, IBM's 14-Day Relative Strength Index (RSI) fell into "oversold" territory at 24, indicating the stock might have been due for a short-term bounce.

The stock has tended to exceed volatility expectations over the past year, too. This is per its of 70 out of 100.