IBM Stock Forecast & Long-term Prediction

• Price Today — 222.4 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.

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.

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.

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.

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.

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. 

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.

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.