Wall Street’s views on IBM
In this article, we’ll take a look at the market’s views on IBM (IBM) and its metrics. Of the 25 analysts covering IBM, eight have issued “buy” recommendations, two have issued “sell” recommendations, and 15 have issued “hold” recommendations on the stock.
Most analysts are recommending a “hold,” which is an indication that they’re cautious about IBM’s growth consistency and prospects.
IBM’s price performance
IBM’s stock price movement has been negative over the past month. As of April 25, 2018, the company’s stock has fallen ~4.8%. However, in the last year, IBM stock has generated a return of ~8.8%.
Though IBM has taken several initiatives and made numerous investments in its Strategic Imperatives segment, especially in technologies such as IoT (Internet of Things), AI (artificial intelligence), machine learning, and blockchain technology—which is expected to be dominant in 2018—the company is falling a little short of converting them into revenue figures, which is weighing on its stock.
Analysts’ target prices
Wall Street analysts’ consensus target price for IBM was $169.50 per share on April 25, and its median target price was $169. IBM’s closing price was $145.94 on the day, indicating that there is ample room for appreciation.