IBM Shares Surpass Analyst Price Target: What’s Next?
In recent trading, shares of International Business Machines Corp (Symbol: IBM) have surpassed the average analyst 12-month target price of $252.33, currently priced at $253.21 per share. When a stock exceeds an analyst’s target, the analyst must decide how to respond: either downgrade based on valuation or increase their target price. Their decision often hinges on the company’s fundamental business developments that may be driving the stock price higher. If outlooks appear positive, it could warrant an elevation in target price.
Within the Zacks coverage universe, there are 18 different analyst price targets for International Business Machines Corp. It’s important to note that the average price target represents a mathematical mean: some analysts hold lower targets, with one pessimistically forecasting a price of $160.00, while another predicts a high of $320.00. The standard deviation of these targets stands at $42.413, highlighting the varying perspectives among analysts.
The rationale for examining the average IBM price target lies in leveraging the “wisdom of the crowds” concept. By aggregating the insights of diverse contributors, investors gain a more rounded view compared to the perspective of a single expert. Now that IBM has crossed above the average target price of $252.33 per share, investors face a significant question: is this just a temporary milestone on the path to a higher target, or has valuation become so stretched that it’s time to consider selling?
Current Analyst Ratings for IBM
| Recent IBM Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 6 | 4 | 4 | 4 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 9 | 9 | 9 | 9 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 2 | 2 | 2 | 2 |
| Average rating: | 2.5 | 2.69 | 2.69 | 2.69 |
The average rating corresponds to a scale where 1 is Strong Buy and 5 is Strong Sell. This summary incorporates data from Zacks Investment Research via Quandl.com. For ongoing insights, consider reviewing the latest Zacks research report on IBM—available free of charge.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
