IBM IBM underwent analysis by 14 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 2 | 7 | 1 | 1 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 1 | 6 | 1 | 1 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 0 | 1 | 0 | 0 |
Analysts have set 12-month price targets for IBM, revealing an average target of $183.93, a high estimate of $220.00, and a low estimate of $130.00. Witnessing a positive shift, the current average has risen by 0.11% from the previous average price target of $183.73.
Decoding Analyst Ratings: A Detailed Look
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 |
|---|---|---|---|---|---|
| Matthew Swanson | RBC Capital | Maintains | Outperform | $200.00 | - |
| David Grossman | Stifel | Maintains | Buy | $190.00 | $190.00 |
| Matthew Swanson | RBC Capital | Maintains | Outperform | $200.00 | - |
| Stefan Slowinski | Exane BNP Paribas | Announces | Underperform | $145.00 | - |
| Erik Woodring | Morgan Stanley | Lowers | Equal-Weight | $179.00 | $186.00 |
| Brian Essex | JP Morgan | Lowers | Neutral | $185.00 | $190.00 |
| Keith Bachman | BMO Capital | Lowers | Market Perform | $190.00 | $210.00 |
| Moshe Katri | Wedbush | Raises | Neutral | $160.00 | $140.00 |
| Brent Thill | Jefferies | Lowers | Hold | $190.00 | $210.00 |
| Brent Thill | Jefferies | Lowers | Hold | $210.00 | $215.00 |
| David Vogt | UBS | Raises | Sell | $130.00 | $125.00 |
| David Grossman | Stifel | Maintains | Buy | $190.00 | $190.00 |
| Wamsi Mohan | B of A Securities | Raises | Buy | $220.00 | $200.00 |
| Toni Sacconaghi | Bernstein | Raises | Market Perform | $186.00 | $165.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to IBM. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of IBM compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for IBM's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of IBM's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on IBM analyst ratings.
Unveiling the Story Behind 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 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 is a B2B company, IBM's outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.
IBM: Delving into Financials
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Revenue Growth: IBM's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 1.47%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.
Net Margin: IBM's net margin is impressive, surpassing industry averages. With a net margin of 11.1%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): IBM's ROE stands out, surpassing industry averages. With an impressive ROE of 7.01%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): IBM's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.18%, the company showcases efficient use of assets and strong financial health.
Debt Management: IBM's debt-to-equity ratio stands notably higher than the industry average, reaching 2.7. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Analyst Ratings: Simplified
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 publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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