What is IBM's updated fair value estimate?

IBM's fair value estimate has been slightly increased to approximately $293.89.

Which areas are driving optimism for International Business Machines?

Optimism for IBM is driven by its performance in software, consulting, and its leading position in quantum computing.

What are Wall Street analysts saying about IBM's stock?

Analysts are generally positive, citing improved execution, growth potential in software, and quantum computing advancements.

Home / Business and Economy / IBM's Fair Value Edges Upward Amid Growth Hopes

IBM's Fair Value Edges Upward Amid Growth Hopes

18 Dec

•

Summary

IBM's fair value estimate saw a slight increase.
Analysts anticipate steadier long-term revenue growth.
Quantum computing and software strength are key drivers.

IBM's Fair Value Edges Upward Amid Growth Hopes

International Business Machines has experienced a slight upward revision in its fair value estimate, moving from approximately $290.89 to $293.89. This adjustment stems from improved long-term revenue growth expectations and a marginal increase in the required rate of return factored into financial models by analysts.

The company's emerging strengths in software, consulting, and its advancements in quantum computing are seen as factors that can counterbalance persistent execution risks. This has led to a cautiously constructive outlook on IBM's stock, with some analysts increasing their price targets. For instance, BMO Capital raised its target to $305, citing better software growth and consulting turnarounds.

Further optimism is fueled by Jefferies lifting its target to $300, anticipating higher share prices based on improved software execution and automation tailwinds. Melius Research maintained a Buy rating, highlighting IBM's leading position in quantum computing, which could translate into significant future revenue.