Providing a diverse range of perspectives from bullish to bearish, 14 analysts have published ratings on IBM IBM in the last three months.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
---|---|---|---|---|---|
Total Ratings | 1 | 5 | 7 | 0 | 1 |
Last 30D | 0 | 1 | 1 | 0 | 1 |
1M Ago | 0 | 1 | 1 | 0 | 0 |
2M Ago | 0 | 0 | 0 | 0 | 0 |
3M Ago | 1 | 3 | 5 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $257.07, along with a high estimate of $320.00 and a low estimate of $170.00. This upward trend is evident, with the current average reflecting a 5.09% increase from the previous average price target of $244.62.
Analyzing Analyst Ratings: A Detailed Breakdown
The analysis of recent analyst actions sheds light on the perception of IBM by financial experts. 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 | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |David Vogt |UBS |Raises |Sell | $170.00|$160.00 | |Erik Woodring |Morgan Stanley |Lowers |Equal-Weight | $233.00|$237.00 | |Daniel Ives |Wedbush |Maintains |Outperform | $300.00|$300.00 | |Matthew Swanson |RBC Capital |Maintains |Outperform | $276.00|$276.00 | |Brent Thill |Jefferies |Lowers |Hold | $265.00|$270.00 | |Param Singh |Oppenheimer |Announces |Outperform | $320.00|- | |Brian Essex |JP Morgan |Raises |Neutral | $244.00|$233.00 | |Brent Thill |Jefferies |Raises |Hold | $270.00|$245.00 | |Wamsi Mohan |B of A Securities |Raises |Buy | $270.00|$260.00 | |Keith Bachman |BMO Capital |Raises |Market Perform | $280.00|$260.00 | |Matthew Swanson |RBC Capital |Raises |Outperform | $276.00|$250.00 | |Erik Woodring |Morgan Stanley |Raises |Equal-Weight | $228.00|$217.00 | |Erik Woodring |Morgan Stanley |Lowers |Equal-Weight | $217.00|$222.00 | |Matthew Hedberg |RBC Capital |Maintains |Outperform | $250.00|$250.00 |
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. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of IBM compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of IBM's stock. This comparison reveals trends in analysts' expectations over time.
Capture valuable insights into IBM's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on IBM analyst ratings.
All You Need to Know About IBM
IBM looks to be a part of every aspect of an enterprise's IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 300,000 people. The company has a robust roster of business partners to service its clients, which include 95% of all Fortune 500 companies. Primary products include its mainframes, Red Hat software, transaction processing software, and IT consulting.
IBM's Economic Impact: An Analysis
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: IBM's remarkable performance in 3M is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 1.0%. 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: IBM's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 16.6%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): IBM's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 11.26% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): IBM's ROA excels beyond industry benchmarks, reaching 2.15%. This signifies efficient management of assets and strong financial health.
Debt Management: IBM's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.14, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Analyst Ratings: What Are They?
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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