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The Analyst Verdict: IBM In The Eyes Of 7 Experts
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The Analyst Verdict: IBM In The Eyes Of 7 Experts
Jan 28, 2025 11:30 AM

7 analysts have shared their evaluations of IBM ( IBM ) during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 1 4 0 1
Last 30D 0 0 1 0 0
1M Ago 1 1 2 0 1
2M Ago 0 0 1 0 0
3M Ago 0 0 0 0 0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $222.43, a high estimate of $260.00, and a low estimate of $160.00. Marking an increase of 2.64%, the current average surpasses the previous average price target of $216.71.

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of IBM ( IBM ) by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Erik Woodring Morgan Stanley Lowers Equal-Weight $217.00 $222.00
Matthew Hedberg RBC Capital Maintains Outperform $250.00 $250.00
Brian Essex JP Morgan Raises Neutral $233.00 $227.00
Wamsi Mohan B of A Securities Raises Buy $260.00 $250.00
David Vogt UBS Raises Sell $160.00 $150.00
Toni Sacconaghi Bernstein Raises Market Perform $215.00 $210.00
Erik Woodring Morgan Stanley Raises Equal-Weight $222.00 $208.00

Key Insights:

Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to IBM ( IBM ). This insight gives a snapshot of analysts' perspectives on the current state of the company.

Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of IBM ( IBM ) compared to the broader market.

Price Targets: Gaining insights, analysts provide estimates for the future value of IBM's ( IBM ) stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of IBM's ( IBM ) market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on IBM ( IBM ) analyst ratings.

All You Need to Know About IBM

IBM ( IBM ) looks to be a part of every aspect of an enterprise's IT needs. The company sells software, IT services, consulting, and hardware. IBM ( IBM ) operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients, which includes 95% of all Fortune 500. While IBM ( IBM ) is a B2B company, IBM's ( IBM ) outward impact is substantial. For example, IBM ( IBM ) manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections with the world.

Financial Milestones: IBM's Journey

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: IBM's ( IBM ) remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 1.46%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -2.2%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -1.36%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.25%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 2.46, IBM ( IBM ) faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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