2.8% Below Target

The consensus price target for IBM is $314.83, close to the current price of $306.13 (2.8% implied move). Based on 50 analyst estimates, the stock appears fairly valued near current levels.

IBM has a consensus rating of "Buy" based on 50 Wall Street analysts. The rating breakdown is mixed, with 22 Hold ratings making up the largest segment. The consensus 12-month price target of $314.83 implies 2.8% upside from current levels.

IBM trades at a forward P/E of 24.6222x, representing a moderate valuation. With analysts targeting $314.83 (2.8% implied move), the stock appears close to fair value.

The most bullish Wall Street analyst has a price target of $360 for IBM, while the most conservative target is $231. The consensus of $314.83 represents the median expectation. Our quantitative valuation model projects a bull case target of $389 based on optimistic growth and margin assumptions. These targets typically reflect 12-month expectations.

IBM is heavily covered by Wall Street, with 50 analysts providing price targets and ratings. Of these, 1 have Strong Buy ratings, 23 have Buy ratings, 22 recommend Hold, and 4 have Sell or Strong Sell ratings. Higher analyst coverage generally indicates greater institutional interest and more reliable consensus estimates.

The 12-month IBM stock forecast based on 50 Wall Street analysts shows a consensus price target of $314.83, with estimates ranging from $231 (bear case) to $360 (bull case). The median consensus rating is "Buy". Our proprietary valuation model produces a base case fair value of $295, with bear/bull scenarios of $186/$389.

Our quantitative valuation model calculates IBM's fair value at $295 (base case), with a bear case of $186 and bull case of $389. The model uses discounted cash flow analysis, historical growth rates, and margin mean-reversion to project FY+2 earnings, then applies an appropriate P/E multiple. The model confidence score is 54/100.

IBM trades at a forward P/E ratio of 24.6x based on next-twelve-months earnings estimates compared to a trailing P/E of 27.4x. The lower forward P/E indicates analysts expect earnings growth. A forward P/E is useful for comparing valuations when earnings are expected to change significantly.

IBM appears fairly valued according to analysts, with a "Buy" rating and minimal upside to the $314.83 target. Consider your investment thesis and risk tolerance. This information is for educational purposes only. Always conduct your own research, consider your financial situation, and consult a financial advisor before making investment decisions.

IBM analyst price targets range from $231 to $360, a 41% moderate spread showing some variance in outlooks. Differences stem from varying assumptions about revenue growth, profit margins, competitive dynamics, and valuation multiples. The $314.83 consensus represents the middle ground. Our model's $186-$389 range provides an independent fundamental perspective.