RBC Capital Markets has lowered its price target for International Business Machines Corporation (IBM) to $300 from $330, according to a report from Detik Finance on May 7, 2026.

The financial firm maintained its Outperform rating for the technology company after attending the IBM Think user conference.

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Strategic Plans and Target Revision

During the conference, IBM management discussed strategic plans for core segments including hybrid cloud, artificial intelligence, and quantum computing.

The target reduction reflects compressed peer valuation multiples, RBC noted.

On the first-quarter earnings call, corporate leadership provided updates regarding the financial trajectory for the remainder of the fiscal year.

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CFO James Kavanaugh said the company's strong start to the year increased confidence in delivering constant-currency revenue growth of more than 5% in 2026.

He also highlighted nearly $1 billion in year-over-year free cash flow growth.

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Revenue and Margin Outlook

Kavanaugh noted that constant-currency revenue growth for the second quarter should align with full-year expectations.

The organization projects an expansion of approximately 50 basis points in operating pre-tax margin, driven by software mix improvements and productivity efforts.

IBM shares have been under pressure amid broader market volatility, but analysts remain cautiously optimistic about the company's long-term prospects.

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The maintained Outperform rating suggests RBC Capital Markets still sees IBM as a favorable investment despite the lowered price target.