Based on the provided data and current market conditions, IBM's stock shows mixed signals. The stock closed at $224.79 on January 17, 2025, with a regular market percentage change of +0.96% .

Technical Analysis

The stock is currently trading near its Fibonacci resistance level of $225.56, with support at $216.31 . The RSI of 54.30 indicates neutral momentum, neither overbought nor oversold. The negative MACD of -0.75 suggests some bearish pressure in the short term.

Fundamental Analysis Recent analyst ratings show mixed sentiment:

UBS maintains Strong Sell with a $160 price target (-26.52% downside)
Bernstein maintains Hold with $215 target (-3.44% downside)
Morgan Stanley maintains Hold with $222 target (-3.20% downside)
RBC Capital reiterates Buy with $250 target (+14.53% upside)

Business Outlook IBM is well-positioned in AI with its watsonx platform, which has accumulated $3 billion in orders. The company expects an "upward inflection in growth in 2025" driven by:

Software acceleration
Red Hat opportunities
New mainframe cycle
Generative AI positioning

Conclusion Given the neutral technical indicators, mixed analyst sentiment, and the stock trading near resistance levels, it would be prudent to wait for a pullback before initiating a new position. The stock appears fairly valued at current levels with more downside risk than upside potential in the short term.

What is price prediction 2025 for IBM Stock?

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

IBM's stock is expected to reach $270 by end of 2025, representing a 13-15% upside from current levels of $224.79, driven by strong AI momentum and software segment growth.

The prediction is supported by three key factors: IBM's watsonx AI platform has accumulated over $3 billion in multiyear contracts with 50% order growth in just three months, the upcoming AI-enhanced IBM Z mainframe refresh cycle in 2025 will drive infrastructure segment growth, and the software segment continues showing robust double-digit growth in key areas like Red Hat (14%) and Automation (13%).

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 financial data and recent market context, IBM appears to be fairly valued at current levels. The company's P/E ratio has increased from 20.68x to 30.22x over the past three quarters, indicating some valuation expansion. The EV/EBITDA multiple has also risen from 16.14x to 17.97x, suggesting the market is pricing in higher growth expectations. Net margins have declined significantly from 14% to -2.13% in Q3 2024, raising some profitability concerns. The company's debt-to-equity ratio remains elevated at 230.65%, though it has improved slightly from 255.02% earlier in 2024.

The stock has received positive coverage recently, with analysts noting its strong fundamentals and potential in AI integration. However, there are also concerns about the recent quarterly performance showing negative net income in Q3 2024 and declining current ratio from 1.13 to 1.06, indicating some pressure on liquidity.

The company's gross margins have remained relatively stable around 54%, demonstrating pricing power despite market challenges. Revenue has shown moderate fluctuation between $14.4B-$15.7B over the past three quarters, without clear growth momentum.

Based on these metrics and recent performance, IBM appears to be trading at the higher end of its historical valuation range, suggesting limited upside potential in the near term unless profitability metrics improve significantly.

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 analysis, here is IBM's stock price prediction for 2030:

IBM stock is projected to reach $350-375 by 2030, driven by the company's strong positioning in enterprise AI through its watsonx platform which has already accumulated $3 billion in orders by late 2024. The company's strategic shift towards AI and hybrid cloud solutions, combined with its consulting expertise that competitors like OpenAI and Google cannot match, positions IBM for sustained growth. Recent analyst upgrades and price target increases to $240-250 range in late 2024 demonstrate growing confidence in IBM's AI-driven transformation.