IBM Bounces Back After Upgrade, Defense Contract

Core Viewpoint - IBM's stock is experiencing a slight increase following an upgrade from UBS, indicating a more favorable risk-reward profile despite ongoing concerns in the AI sector [1] Group 1: Stock Performance - IBM's stock is trading 1.6% higher at $233.02 after UBS upgraded its rating to "neutral" from "sell" with a price target of $236 [1] - The stock had previously dropped 13% to a low of $220, marking its lowest level since April, amid broader AI disruption concerns [1] - IBM's stock has decreased over 28% from its record high of $324.90 on November 12 and is still down 20% year to date [1] Group 2: Analyst Insights - UBS cited a more balanced risk-reward skew for IBM, despite recent volatility in the AI sector [1] - Morgan Stanley cut its price target for IBM from $304 to $247, expressing concerns that Anthropic's Claud could disrupt IBM's mainframe business [1] Group 3: Technical Indicators - Following the recent decline, IBM's 14-Day Relative Strength Index (RSI) fell to 24, indicating the stock may be due for a short-term bounce [2] - IBM's stock has shown a tendency to exceed volatility expectations, reflected in its Schaeffer's Volatility Scorecard (SVS) rating of 70 out of 100 [2]