- IBM offers a stable dividend yield, making it a solid option for conservative investors.
- Current analyst forecasts suggest a moderate upside potential of 7.46%.
- GuruFocus estimates point to a potential downside of 34.61%, raising questions about current valuation.
IBM (IBM, Financial) presents itself as a robust choice for risk-averse investors, bolstered by its consistent dividend yield and resilience in a volatile market. However, with its recent stock price increase, J.P. Morgan suggests that the potential for significant gains might be somewhat confined. Despite a premium price-to-earnings ratio, IBM’s ability to withstand market fluctuations is highlighted by an 8.3% annual growth, contrasting with sector downturns.
Analyst Forecasts at a Glance
International Business Machines Corp (IBM, Financial) has attracted diverse analyst opinions, with 18 experts providing a one-year average price target of $252.63. This projection comes with a high estimate of $320.00 and a low of $160.00, suggesting a potential upside of 7.46% from the current price of $235.09. For more detailed estimates, visit the International Business Machines Corp (IBM) Forecast page.
The brokerage firms' consensus is also noteworthy, with 23 firms rating IBM at an average of 2.4, indicating an "Outperform" status. The rating scale spans from 1 (Strong Buy) to 5 (Sell), reflecting a positive but cautious stance towards IBM's stock performance.
Evaluating IBM's Fair Value
Through GuruFocus metrics, the estimated GF Value for IBM over the next year is predicted to be $153.72, indicating a possible downside of 34.61% from its current price of $235.09. The GF Value is a proprietary calculation of what the stock should ideally trade at, based on historical trading multiples, business growth, and future performance estimates. Investors seeking a deep dive into IBM's valuation and business summary can find extensive data on the International Business Machines Corp (IBM, Financial) Summary page.
