Technical Analysis The stock is currently trading at $224.80, showing a slight decline of -0.55% in the last session. The stock has been consolidating near its recent highs, with key technical indicators suggesting a neutral to slightly bullish stance.

Fundamental Strengths

Leading position in quantum computing with advanced technologies like the Heron chip
Strong AI initiatives through watsonx platform with $3 billion in multiyear contracts
Healthy free cash flow of $6.6 billion in first nine months of 2024
Attractive dividend yield of 3%, with 29 consecutive years of dividend growth

Key Challenges

Slow revenue growth (only 2% YoY)
High P/E ratio of 33 compared to competitors
Cyclical mainframe business facing temporary slowdown

Analyst Sentiment Recent analyst actions show mixed opinions:

BofA Securities: Strong Buy with $260 target (15.02% upside)
JP Morgan: Hold with $233 target (3.08% upside)
UBS: Strong Sell with $160 target (-26.52% upside)

Near-term Catalysts

Upcoming earnings report on January 29, 2025
New AI-enhanced mainframe systems launch expected in 2025
Investor day scheduled for February 4, 2025

Recommendation: HOLD While IBM shows promise in AI and quantum computing, the current valuation and mixed growth metrics suggest waiting for a better entry point. The upcoming earnings report and investor day could provide better clarity on growth trajectory.

What is price prediction 2025 for IBM Stock?

Based on the provided data and market analysis, here is IBM's stock price prediction for 2025:

IBM stock is expected to reach $270 by end of 2025, representing a 20% upside from current price of $224.67, driven by strong AI momentum and software segment growth. The company's watsonx AI platform has already secured $3 billion in multi-year contracts, showing accelerating enterprise adoption. Additionally, IBM's upcoming AI-enhanced mainframe refresh cycle in 2025 is expected to drive infrastructure segment growth.

What is surpport and resistant level for IBM Stock?

The S1 support level for IBM Stock is $216.47 ,The R1 resistant level for IBM Stock is $226.28.

What is the current price of IBM Stock?

As of the end of day on 2025-01-24, the price of IBM Stock was $224.67.

What is the target price of IBM Stock?

The target price for IBM Stock according to analyst rating is 230.55, with the highest price target at 260.00 and the lowest at 160.00. Analysts have a Moderate Buy rating on IBM Stock overall.

What is the market cap of International Business Machines Corp?

The market cap of IBM is $207.9B.

Is International Business Machines Corp (IBM) overvalued?

Based on the provided data and recent market analysis, here's a concise evaluation of IBM's valuation:

Valuation Analysis IBM currently shows signs of being fairly valued to slightly overvalued based on multiple metrics:

P/E ratio of 30.22 (Q3 2024) is significantly higher than historical averages
EV/EBITDA of 17.97 indicates premium valuation compared to industry standards
Price-to-Sales ratio of 3.28 suggests rich valuation for a mature tech company

Financial Performance Recent financial metrics raise some concerns:

Q3 2024 showed negative net income of -$330M, a significant decline
Net margin turned negative to -2.13% in Q3 2024
Current ratio declined to 1.06, showing tightening liquidity

Analyst Sentiment Recent analyst views are mixed:

BofA raised target to $260 with Strong Buy rating
UBS maintains Sell rating with $160 target, citing slower IT demand recovery
JPMorgan neutral with $233 target, expecting "healthy" software but soft consulting

Conclusion IBM appears overvalued at current levels due to:

Deteriorating financial metrics in recent quarters
Premium valuation multiples despite growth challenges
Mixed analyst sentiment and concerns about IT spending
Declining operational efficiency metrics
Negative earnings momentum in latest quarter

What is International Business Machines Corp (IBM)'s business?

International Business Machines Corporation is engaged in addressing the hybrid cloud and artificial intelligence (AI) opportunity with a platform-centric approach, focused on providing client value through a combination of technology and business expertise. Its segments include Software, Consulting, Infrastructure and Financing. Its Software segment comprises two business areas: Hybrid Platform & Solutions, which includes software to help clients operate, manage and optimize their IT resources and business processes within hybrid, multi-cloud environments, and transaction processing, which includes software that supports client’s mission-critical, on-premises workloads in industries such as banking, airlines and retail. Consulting segment is engaged in business transformation, technology consulting and application operations. Infrastructure segment is engaged in hybrid infrastructure and infrastructure support. Financing segment is engaged in client financing and commercial financing.

What is price prediction 2030 for IBM Stock?

Based on the provided data and market research, here's a comprehensive analysis for IBM's stock price prediction for 2030:

IBM's stock is projected to reach approximately $350-375 by 2030, driven by its strong positioning in AI and quantum computing technologies, particularly through its watsonx platform which has already accumulated $3 billion in orders. The company's strategic shift towards software and AI solutions, with software now comprising 45% of total revenue, coupled with its leadership in quantum computing development roadmap through 2029, supports this bullish outlook. The robust free cash flow growth trajectory and expanding AI-driven business opportunities, particularly in enterprise solutions, provide strong fundamentals for this price target.