TLDRIBM stock has dropped 28.6% in under a month, falling from $312.95 to $223.35The selloff was triggered by Anthropic highlighting COBOL functionality in Claude Code, raising fears AI could erode IBM’s legacy businessJefferies analyst Brent Thill maintained a Buy rating with a $370 price target, calling the dip a buying opportunityIBM’s watsonx Code Assistant for Z has been available since Q4 2023 and already converts COBOL to Java using generative AIIBM announced a new partnership with Deepgram, making it the first voice partner integrated into watsonx OrchestrateIBM stock has had a rough few weeks. It has fallen 28.6% in less than a month, dropping from $312.95 on February 2 to $223.35, putting it near its 52-week low.BREAKING: IBM stock, $IBM, falls over -10% after Anthropic announces that Claude can streamline COBOL code.It’s becoming increasingly clear how pivotal the times we are in right now truly are. pic.twitter.com/yGVZBeHk3R— The Kobeissi Letter (@KobeissiLetter) February 23, 2026The single biggest blow came when the stock dropped 13% in one day — its largest single-day decline since 2000.The catalyst was a blog post from Anthropic. The AI company highlighted COBOL functionality in its Claude Code platform, pointing out that hundreds of billions of COBOL lines remain active across finance, airlines, and government sectors.International Business Machines Corporation, IBMThat spooked investors. IBM has long been a key player in COBOL-dependent systems like payment processing and financial infrastructure. The fear: AI could reduce demand for IBM’s legacy COBOL services.The broader selloff also reflects a market-wide shift away from legacy tech, with investors moving toward quantum computing startups and high-yield bonds.Jefferies Holds Its GroundNot everyone is running. Jefferies analyst Brent Thill pushed back on the panic, arguing IBM is “already disrupting itself.”Thill pointed to IBM’s watsonx Code Assistant for Z, which has been generally available since Q4 2023. The tool uses generative AI to convert COBOL into Java, interpret production code, and update legacy applications.He argues this gives IBM a structural edge over general-purpose AI coding tools, which lack native access to mainframe data and operational context.Thill also noted that IBM is building for a “multi-model, agentic world” by partnering with Anthropic, OpenAI, and others — meaning the very companies seen as threats are also partners.He called the selloff a “near-term sentiment overhang on legacy services rather than an existential or structural risk” and maintained his Buy rating with a $370 price target, implying 66% upside from current levels.Eleven other analysts share his bullish view. Five analysts have a Hold rating and one has a Sell, giving IBM a Moderate Buy consensus. The average price target sits at $337.53, pointing to roughly 51% upside over 12 months.IBM Adds Voice AI PartnerOn the same day, IBM announced a collaboration with Deepgram, making it IBM’s first voice AI partner.Deepgram’s speech-to-text and text-to-speech technology will be embedded into IBM’s watsonx Orchestrate platform, allowing users to interact with AI agents using natural speech.The integration supports multiple languages and dialects, including Arabic and Indian variants, and targets use cases in customer care, call analysis, and voice-driven data entry in healthcare and finance.IBM’s P/E ratio currently sits at 20.3, and at least one analysis flags the stock as undervalued relative to its fair value.Historically, IBM has only seen one comparable dip of 30% or more in under 30 days since 2010. Following that event, the stock posted a peak recovery of 42% within 12 months.The post IBM Stock Just Had Its Worst Day Since 2000 – Jefferies Says Buy the Dip appeared first on Blockonomi.