Analysts’ recommendations and target prices
Of the 24 analysts covering IBM (IBM) on June 1, seven recommended “buy,” one rated it as “overweight,” 14 recommended “hold,” and two recommended “sell,” as shown in the graph below. Their average target price for IBM was $168.69, whereas the stock closed at $141.95 on June 1. IBM has returned -6.6% in the last year, -0.35% in the last month, and -1.7% in the last week. Peers Microsoft (MSFT), Oracle (ORCL), and Accenture (ACN) have returned 2.5%, 1.9%, and 2.3%, respectively, in the last week.
Moving average convergence divergence and guidance
On June 1, IBM’s MACD (moving average convergence divergence) reading was -1.6, while Microsoft’s, Oracle’s, and Accenture’s were 1.1, 0.06, and 0.65, respectively. A negative MACD reading indicates that a stock is following a downward trading trend, whereas a positive MACD reading indicates it is heading upward.
This fiscal year, IBM expects non-GAAP EPS of ~$13.80. It expects its free cash flow to fall year-over-year to $12 billion from $13 billion.