Key Takeaways:
- IBM shares dipped by 5% despite exceeding earnings forecasts for Q1 2025.
- Analysts forecast an average price target of $252.63, a potential upside of 2.91%.
- IBM is rated "Outperform" by brokerage consensus, but GF Value suggests a downside risk.
IBM (IBM, Financial) experienced a 5% decline in its stock price following the release of its first-quarter 2025 results. While the tech giant surpassed expectations for earnings and revenue, reporting a revenue of $14.54 billion and an adjusted EPS of $1.60, investors were concerned about a 2% decline in the Consulting segment. This overshadowed growth in the Software division, prompting the company to maintain its full-year growth projections.
Wall Street Analysts' Forecast
According to estimates from 18 analysts, International Business Machines Corp (IBM, Financial) has an average price target of $252.63. The forecasts range from a high of $320.00 to a low of $160.00. This average target indicates a potential upside of 2.91% from IBM's current stock price of $245.48. For further detailed estimates, investors can visit the International Business Machines Corp (IBM) Forecast page.
When looking at the consensus from 23 brokerage firms, IBM holds an average recommendation score of 2.4, which suggests an "Outperform" status. The recommendation scale, ranging from 1 to 5, classifies 1 as Strong Buy and 5 as Sell, positioning IBM favorably in analysts' eyes.
However, from a valuation perspective, GuruFocus estimates IBM's GF Value to be $153.71 in one year, implying a potential downside of 37.38% from its current price of $245.48. The GF Value represents an estimate of the fair value at which the stock should trade, calculated by examining historical trading multiples, past business growth, and future performance expectations. Additional information is accessible on the International Business Machines Corp (IBM, Financial) Summary page.
