Across the recent three months, 8 analysts have shared their insights on IBM IBM, expressing a variety of opinions spanning from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 2 | 2 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 0 | 1 | 0 | 0 |
| 3M Ago | 2 | 2 | 1 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $197.38, a high estimate of $220.00, and a low estimate of $183.00. This current average has increased by 14.34% from the previous average price target of $172.62.
Deciphering Analyst Ratings: An In-Depth Analysis
A clear picture of IBM's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines 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 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 |
| Matthew Swanson | RBC Capital | Raises | Outperform | $200.00 | $179.00 |
| Keith Bachman | BMO Capital | Raises | Market Perform | $210.00 | $155.00 |
| David Grossman | Stifel | Raises | Buy | $190.00 | $183.00 |
| David Grossman | Stifel | Raises | Buy | $183.00 | $144.00 |
| Amit Daryanani | Evercore ISI Group | Raises | Outperform | $200.00 | $165.00 |
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: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of IBM compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for IBM's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
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.
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's Financial Performance
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Positive Revenue Trend: Examining IBM's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.13% as of 31 December, 2023, showcasing a substantial increase in 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 excels beyond industry benchmarks, reaching 18.92%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 14.42%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.49%, the company showcases effective utilization of assets.
Debt Management: IBM's debt-to-equity ratio stands notably higher than the industry average, reaching 2.66. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
The Core of Analyst Ratings: What Every Investor Should Know
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.
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.
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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