Where IBM Stands With Analysts

During the last three months, 7 analysts shared their evaluations of IBM IBM, revealing diverse outlooks from bullish to bearish.

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

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $152.43, a high estimate of $180.00, and a low estimate of $130.00. Observing a downward trend, the current average is 3.73% lower than the prior average price target of $158.33.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of IBM among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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 gauge the dynamics of price targets, providing estimates for the future value of IBM's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of IBM's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on IBM analyst ratings.

Delving into IBM's Background

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: A Financial Overview

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, IBM showcased positive performance, achieving a revenue growth rate of 4.58% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: IBM's net margin is impressive, surpassing industry averages. With a net margin of 11.55%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): IBM's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.53%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): IBM's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.3%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.54, caution is advised due to increased financial risk.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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