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Wall Street Journal10 Analysts Have This To Say About IBM
Providing a diverse range of perspectives from bullish to bearish, 10 analysts have published ratings on IBM (NYSE:IBM) in the last three months.
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 | 3 | 2 | 0 | 1 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 2 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 1 |
| 3M Ago | 1 | 1 | 2 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $220.7, a high estimate of $250.00, and a low estimate of $145.00. Surpassing the previous average price target of $196.00, the current average has increased by 12.6%.
Breaking Down Analyst Ratings: A Detailed Examination
The perception of IBM by financial experts is analyzed through recent analyst actions. The following summary presents 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 | Raises | Buy | $246.00 | $205.00 |
| Matthew Swanson | RBC Capital | Raises | Outperform | $250.00 | $211.00 |
| Wamsi Mohan | B of A Securities | Raises | Buy | $250.00 | $209.00 |
| James Schneider | Goldman Sachs | Raises | Buy | $250.00 | $220.00 |
| Amit Daryanani | Evercore ISI Group | Raises | Outperform | $240.00 | $215.00 |
| David Vogt | UBS | Raises | Sell | $145.00 | $130.00 |
| Matthew Swanson | RBC Capital | Raises | Outperform | $211.00 | $200.00 |
| Brent Thill | Jefferies | Raises | Hold | $200.00 | $190.00 |
| Keith Bachman | BMO Capital | Raises | Market Perform | $210.00 | $190.00 |
| David Grossman | Stifel | Raises | Buy | $205.00 | $190.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to IBM. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of IBM compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for IBM's future value. Comparing current and prior targets offers insights into analysts' evolving 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.
Discovering IBM: A Closer Look
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.
Key Indicators: IBM's Financial Health
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Revenue Growth: IBM displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 1.9%. This indicates a notable increase in the company's 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 11.63%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): IBM's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.76% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): IBM's ROA stands out, surpassing industry averages. With an impressive ROA of 1.35%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: IBM's debt-to-equity ratio stands notably higher than the industry average, reaching 2.49. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Understanding the Relevance of Analyst Ratings
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.