- IBM's Consulting segment faces uncertainties due to U.S. government activities but maintains a strong backlog.
- The average analyst price target suggests a modest upside potential of 2.46% for IBM.
- IBM has an "Outperform" rating with a potential downside based on GuruFocus estimates.
IBM (NYSE: IBM) is navigating a challenging landscape in its Consulting division, primarily influenced by U.S. Department of Government Efficiency activities. While federal contracts account for a minor segment of IBM's revenue stream, the company has encountered some disruption in this area. However, IBM remains resilient, fortified by a substantial backlog that underscores its strength in Consulting.
Wall Street Analysts Forecast
According to forecasts from 18 analysts, the average one-year price target for IBM is $251.52, with projections ranging from a high of $320.00 to a low of $160.00. This average target price indicates a potential upside of 2.46% from its current market price of $245.48. These projections can be further explored on the International Business Machines Corp (IBM, Financial) Forecast page.
The consensus from 23 brokerage firms positions IBM's average recommendation at 2.4, which translates to an "Outperform" status. The recommendation scale extends from 1 to 5, where a rating of 1 denotes a Strong Buy and 5 signifies a Sell.
GF Value Estimation
Using GuruFocus's proprietary metrics, the estimated GF Value for IBM stands at $153.71 over the next year. This projection suggests a possible downside of 37.38% from the current trading price of $245.48. The GF Value represents GuruFocus' assessment of the stock's fair value, derived from its historical trading multiples, past business growth, and future performance expectations. For more in-depth analysis, visit the International Business Machines Corp (IBM, Financial) Summary page.
