
IBM (IBM) Stock Forecast & Price Target
IBM (IBM) Analyst Ratings
Bulls say
IBM's stock has shown a positive upward trend, with a 15% increase since the first quarter, supported by a strong automation pipeline that has tripled, indicating significant demand for its services. Investor sentiment has improved regarding IBM's capabilities in quantum computing and generative AI, with GenAI bookings expected to increase from $1 billion seen in the first quarter, suggesting potential growth in top-line revenue. Furthermore, management has raised revenue guidance to over 5% constant currency growth and anticipates adjusted EBITDA growth in the mid-teens, reflecting ongoing improvements in profitability and positioning IBM more competitively among its software peers.
Bears say
IBM's outlook is hampered by persistent consumption headwinds, particularly for its Red Hat division, which is expected to see growth slow to the low end of its previously forecasted "mid-teens" range. The company faces competitive pressures from new entrants, along with challenges in customer retention and an inability to attract new clients, which together could stifle growth opportunities. Additionally, the sluggishness in discretionary spending within its consulting segment raises concerns about the company's overall revenue performance and flexibility due to its size and maturity in the market.
This aggregate rating is based on analysts' research of IBM and is not a guaranteed prediction by Public.com or investment advice.
IBM (IBM) Analyst Forecast & Price Prediction
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