IBM Stock Forecast & Long-term Prediction

  • International Business Machines in May 2024 is ranked 82nd in the world in terms of market capitalization.

  • The company is on the list of dividend aristocrats. It has paid out a yield of 3.96% in the last 12 months. This asset is a great choice for a dividend strategy.

  • IBM's stocks are on the New York Stock Exchange (NYSE). They are not at their highest point. Analysts say they have potential for growth in the long term.

 

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Ibm Stock Price for Today (06/24/2024)

IBM's stock price forecast is optimistic. Shareholders are optimistic about the stock market because they think that the government will make it easier for companies to get money. They also think that technology stocks will be protected from inflation.

Minimum forecast cost

166.14 USD

Maximum Forecast Value

183.62 USD

% value change

-0.84%

Key Findings

  • Price Today — 172.46 USD. 

  • Price at the end of 2024 — $206.

  • Price for next year 2025 — $226.

  • Long-term price 2025-2030 — $226-$370.

Analysts think IBM's stock price will go up in the next year. But the company's financial reports will affect the stock price. In the last five quarters, the company's revenue has been below expectations. If this happens again, it will hurt the company's value.

 

Ibm (IBM) Technical Analysis

Technical analysis tools show a sell or strong sell signal on many timeframes, but a strong buy signal on the minute timeframe.

Key tools:

  1. Moving averages. They indicate the direction of the trend and are used to determine support/resistance levels. On the hourly chart, they are above the update price. This is a sell signal. 

  2. RSI indicator. It indicates overbought/oversold. On the daily chart the indicator has a value of 32.29. It indicates that the asset is near the oversold zone.

  3. MACD. Indicates the direction and strength of the trend. It is neutral on the hourly chart. On the daily chart it indicates selling.

  4. Bollinger Bands serve as an indicator of volatility. It is used in many trading strategies. For example, they are used to find pivot points. In April-May 2024, the lower Bollinger Band was a support line for the price.

A bullish doji star is present on the 5H timeframe at the time of writing. The reliability of the bullish pattern is average. 

There are strong resistance levels at $171.34 and $181.54. The next support level is at $149.32.

Buy

What is the prediction for IBM in the next 5 years?

The average price target for the next 5 years varies greatly depending on the author of the forecast. Analysts promise that during this period equities of International Business Machines Corp. will increase in price 1.5-5 times. The main arguments in favor of significant growth of quotations:

  1. The company has an established business model and significant market asset. Its revenue streams are well diversified.

  2. IBM has great potential in AI, which is still undervalued by investors.

  3. Red Hat is growing in popularity. It is a platform for hybrid cloud solutions offered by the corporation. It will allow the company to occupy its niche in this space without competing directly with Amazon, Google, etc.

  4. Sustained cash flow that the company has demonstrated over a long period of time.

  5. Good dividend yield that attracts passive shareholders. The conditions for maintaining this ratio at a high level are in place. In 2023, only 54% of free cash flow will be used for payments to shareholders.

IBM has changed its approach to development in the last 3 years. Weak segments were closed. This has increased profitability and freed up resources to develop cloud services.

Still, it faces a number of challenges. The most important is the stagnation of consulting revenues. This is a significant contributor to the company's total revenue. Its slowdown will have a negative impact on earnings and bid growth rates.

BeatMarket experts stick to the medium position. In our opinion, if the situation is unfavorable, the asset price may increase by 50-70%. The optimistic forecast for IBM is shown in the table below.

Year

Minimum expected price, $

Percent change from current price

2024

206

+21

2025

226

+33

2026

270

+59

2027

315

+85

2028

363

+113

 

What is the forecast for IBM in 2024?

IBM's financial report for the first quarter of 2024 was worse than the revenue forecast. Shortly before the report was released, the company announced the acquisition of HashiCorp, and as a result of these two factors, the asset fell 9%.

Experts note that the company has strong sides as well. This allows for the resumption of the bullish trend. For example, the VSTAR platform team expects the share price to reach $192 by the end of 2024 in the neutral scenario. The bullish forecast is $214.

BeatMarket analysts also believe that IBM retains the potential for growth of quotations. But if new unfavorable factors occur, the value of the asset will fall.

Date

Minimum expected price, $

Maximum expected price, $

May

146

197

June

140

197

July

121

195

August

122

196

September

123

190

October

134

193

November

144

200

December

156

206

 

What will IBM's stock price be in 2025

In 2025, analysts expect the trends of 2024 to continue. In addition, experts predict a decrease in the Fed rate. The latter will have a positive impact on the stock market as a whole. 

IBM's price targets are quoted by various sources:

  • $169.90 — Coincodex;

  • $236.81 — 30rates;

  • $240 — Coin Price Forecast;

  • $330 — Gov Capital.

One of the points of growth for the prices is the current undervaluation of the company. In the spring of 2024, the P/E multiple was 18.81. For many technology giants, it exceeds 25. 

Therefore, BeatMarket analysts are confident that IBM's stock price will exceed $200 in the future.

Month

Minimum expected price, $

Maximum expected price, $

January

164

188

February

166

190

March

171

197

April

183

211

May

189

217

June

194

224

July

196

226

August

201

231

September

203

234

October

195

225

November

184

212

December

199

226

 

IBM Price Prediction 2026

Evercore ISI's Amit Daryanani notes that IBM is the underappreciated leader of the AI trend. The company is leveraging artificial intelligence capabilities in Watsonx. It's application development and data analytics platforms. Its successes may attract the attention of shareholders, which will lead to the growth of the share price.

The target price for the end of 2026 is set at:

  • $269 - according to Coin Price Forecast;

  • $270 — as reported by Wallet Investor;

  • $364-$493 — as projected by Gov Capital.

The optimistic scenario takes into account the strengthening of positions in AI. Levels below $300 are the result of mathematical modeling based on historical data of price dynamics. 

Month

Minimum expected price, $

Maximum expected price, $

January

216

268

February

209

248

March

205

241

April

192

226

May

195

229

June

206

242

July

175

224

August

216  

256

September

218

260

October

216  

261

November

221

266

December

224

270

 

IBM Stock Forecast 2027

The price forecast for International Business Machines stock is overwhelmingly bullish. The average price target represents a range of $274 to $315.

The actual number will depend on the financial results. According to stockanalysis.com, the company's EPS could rise to $12.75 per stock by 2027. However, in a negative scenario, there is a possibility that this indicator will fall from the level of 2023. This assumption is the basis of most pessimistic forecasts. 

The maximum IBM stock price prediction is offered by Gov Capital analysts. According to the experts of the service, the value of the asset will exceed $ 700. Analysts of BeatMarket do not share such optimism.

Month

Minimum expected price, $

Maximum expected price, $

January

228 

278

February

227  

279

March

226  

280

April

228  

286

May

231  

289

June

233  

293

July

235  

299

August

238

300

September

238  

304

October

237  

304

November

241  

312

December

244

315

 

IBM Stock Price Forecast 2028

Stockanalysis.com outlook for 2028 sales is $68.1 billion to $82.8 billion. The EPS forecast is between $11.60 and $13.82. The company claims that its revenue and earnings will grow by several percent each year. 

This is not the most optimistic financial forecast for the technology sector. Therefore, experts believe that the company will rise in price slower than its competitors.

IBM stock price forecast for 2028:

  • The maximum level of $644-$872 is indicated by Gov Capital;

  • The middle position of $264-$363 is held by Wallet Investor;

  • The most pessimistic prediction of no higher than $313 is given by Coin Price Forecast analysts.

Month

Minimum expected price, $

Maximum expected price, $

January

252  

325

February

248  

324

March

247  

323

April

250  

331

May

251  

333

June

255  

340

July

258

346

August

255  

348

September

257  

352

October

257  

353

November

261  

359

December

264 

363

 

Long-Term IBM Forecast 2030 to 2050

The long-term International Business Machines Corp. stock forecast is neutral. All experts expect growth of prices on the horizon for several decades. But nobody believes that this firm will exceed the return of the Nasdaq-100 index.

This is a weak stock projection for the technology company. Slow price growth is likely to be offset by the dividend. At this point, there is reason to believe that IBM will maintain its status as a dividend aristocrat in the future.

In addition, the market may change its valuation of the issuer. This would require an acceleration of revenue growth rates. And also strengthening of positions in the field of cloud technologies and AI. Under such conditions, the price may be higher than expected.

However, we cannot rule out a negative IBM stock prediction. According to it, the asset will grow by less than 100% until 2050. Global financial crises can also slow the rate of capitalization growth.

 

IBM Stock Projections For the Next 10 Years

Moderate positions are taken by most analysts who have made predictions for the next 10 years:

  • Stockscan.io experts believe that by the beginning of 2035 the price will be in the range of $212.93-$226.23;

  • The algorithms of the Stock Raven platform predict $353.69 for 2034;

  • Coin Price Forecast experts say their benchmark is $443 by the end of 2034.

Over the next 10 years, analysts predict a smooth rise in stock prices. Minor drawdowns will be the result of natural market fluctuations. Experts do not expect any significant deterioration of the company's positions.

 

IBM Price Prediction 2030

The lowest price level is predicted by the experts of Coincodex. In their opinion, in 2030 prices will not exceed $172.77. This figure is based on the dynamics of the last 10 years. 

Experts at the stockscan.io platform believe that the price will be close to $196. Leo Sun of The Motley Fool believes that by 2030. IBM will be able to show a total return of 60-70% compared to 2024 levels. He also admits the possibility of a more favorable scenario. In that case, the stock would double in value.

Analysts think the coin price could rise to $370. This is the most optimistic forecast.

 

IBM Stock Forecast 2040

IBM is expected to maintain its status as a solid company for a conservative portfolio by 2040. Analysts' predicted price target is:

  • $228.12-$235.97 — according to stockscan.io;

  • $453.63 — by Stock Raven's calculations;

IBM's asset price prediction is not optimistic. Many tech companies are promised higher stock price growth.

 

IBM Stock Outlook 2050

Experts at stockscan.io say IBM will be worth between $285.87 and $294.32 by 2050. This is based on past results. 

Experts believe IBM stock will be worth $639.42 in 2050, a 285.87% increase from the update price.

BeatMarket analysts say this is more likely. The company will catch up to other tech companies. First of all, this will be helped by AI.

 

About International Business Machines Corporation (IBM)

ibm logo

International Business Machines Corporation has been around since 1911. It provides technical services and solutions for businesses. Over 70% of its revenue comes from software sales and IT consulting. 

The company plans to grow by offering more cloud services and buying promising startups. 

IBM's main problem is that it's too big. This makes it difficult to manage and slow down its growth. This is what led to it falling behind other technology companies. The main risk is that other companies will catch up with IBM in cloud technologies and AI. The main rivals are Oracle, SAP, Amazon, and others.

 

IBM Price History Chart

90s

From 1993 to 2000, quotes increased 10 times. This was the company's most active period for growth.

2013

The stock price reached $206.31. It then fell until mid-2020.

2023-2024

From April 2023 to April 2024, IBM's value grew by nearly 1.5 times. This shows that IBM has caught up with its rivals in AI and cloud technologies.

 

What Influences IBM Stock Price

External economic factors

Stocks are affected by things like the Fed rate, inflation, and industrial production. Also, how people feel about the market affects how much a company is worth.

Technology industry situation

A company's value depends on its market asset and ability to innovate. IBM's value declined over the last 10 years because it lagged behind competitors in cloud technology and AI.

Financial results

Company financial reports affect stock prices. If the indicators are worse than expected, the stock may get a strong sell rating from analysts.

What do analysts say about IBM stock?

Short-term

(1-6 month)
Experts say don't buy IBM stocks if you have less than six months to wait. In early spring 2024, the price reached its highest point. Then the uptrend ended. The bad feeling is likely to be short-termed. Analysts suggest holding the stock.

Medium-term

(6-12 month)
IBM has a Hold rating on the 6-12 month horizon. Seven experts gave this rating, while four recommend buying and two recommend selling. The target price until the end of the period is $182.31.

Long-term

(1 year+)
IBM has a Hold rating on the 6-12 month horizon. Seven experts gave this rating, while four recommend buying and two recommend selling. The target price until the end of the period is $182.31.

FAQ

What is the target price for IBM in 2025?

IBM's lowest projected price for 2025. - $169.90. The maximum forecast is $330. BeatMarket experts hold a median position. We do not expect the price to rise above $226.

Who is the largest shareholder of IBM?

Approximately 60% of the assets are held by institutional investors. The largest holders include Vanguard Group Inc, BlackRock Inc, State Street Corp.

Is IBM a buy or sell?

At the beginning of May 2024, IBM had a Hold rating from analysts. Few experts recommend buying or selling the stock. On most timeframes, technical analysis tools give a sell signal.

Will IBM ever recover?

There is a high probability that IBM's stock price will renew its historical high. Some analysts believe it will happen within the next 12 months. According to the most negative forecasts, it will happen in 2026-2027.

What is the highest price of IBM stock ever?

The historical high for IBM stock is $206.31. This level was recorded on March 14, 2013. Since then, the stock has not exceeded $200.

Who owns the most IBM stock?

According to the Tipranks service, Vanguard holds the most assets. This is a company that manages mutual funds. If we talk about individuals, according to Investopedia, the largest shareholder is Arvind Krishna (CEO of IBM). His stake is just over 0.05%.

Is IBM a good long-term stock?

IBM is considered a good long-term investment. But only if you are interested in dividends. Experts promise many other technology companies a faster growth in price.

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