IBM (IBM) is gearing up to release its fiscal first-quarter earnings after the market closes on April 23, with a subsequent conference call scheduled for 5:00 pm ET. Investors are keenly watching the company's financial guidance and analyst assessments ahead of the earnings release.
Previously, IBM projected at least a 5% revenue growth in constant currency for fiscal year 2025. However, revenue expectations among analysts have decreased slightly from $65.45 billion to $65.1 billion. Additionally, IBM anticipates a double-digit growth in adjusted EBITDA for the same fiscal year.
In late March, Jefferies analyst Brent Thill adjusted the price target for IBM, reducing it from $270 to $265 while maintaining a Hold rating. This decision reflects broader adjustments in U.S. software price targets due to weakening macroeconomic conditions affecting technology deal decisions. Jefferies noted the anticipation of a mixed performance in the software sector, with possible improvement in the latter half of the year.
Conversely, Morgan Stanley increased its price target for IBM from $228 to $237 while retaining an Equal Weight rating. Despite this positive adjustment, the firm has lowered its FY25 and FY26 earnings per share estimates by 15%-18%. This is part of a wider reduction in price targets due to anticipated slowing growth and the impact of heightened tariffs on IT hardware.
The recent reciprocal tariffs imposed by the U.S. government pose significant challenges for IT hardware manufacturers with substantial international manufacturing dependencies. However, companies like IBM are less directly affected due to minimal direct manufacturing exposure, although they may still experience indirect impacts from broader economic slowdowns.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 44 analysts, the average target price for Apple Inc (AAPL, Financial) is $237.71 with a high estimate of $300.00 and a low estimate of $141.00. The average target implies an upside of 16.41% from the current price of $204.20. More detailed estimate data can be found on the Apple Inc (AAPL) Forecast page.
Based on the consensus recommendation from 50 brokerage firms, Apple Inc's (AAPL, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Apple Inc (AAPL, Financial) in one year is $206.17, suggesting a upside of 0.96% from the current price of $204.2. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Apple Inc (AAPL) Summary page.
