Prediction for Wall Street Analysts' Estimated Stock Price for International Business Machines
In the world of technology, IBM continues to command attention, with analysts maintaining a largely positive outlook for its stock performance in the near future. Despite some recent revenue softness, the consensus rating among 22 analysts covering IBM is a "Moderate Buy."
Key points driving this optimism include IBM's strategic focus on AI, hybrid cloud, and software. Wedbush, for instance, maintains an outperform rating with a price target of $325, viewing any near-term weakness as a buying opportunity based on IBM’s positioning in hybrid and AI applications. Bank of America, while lowering their price target from $320 to $310 due to organic deceleration in software revenue, still holds a buy rating and remains bullish on IBM’s long-term trajectory with expected growth in high-margin software. Predictive models suggest IBM's stock could range between about $250 and $300 in the next few months, with some forecasts estimating an average near $270 to $300 in August 2025 and year-end prices around $264 to $274.
IBM's stock has soared 33.9% over the past 52 weeks and 13.8% on a year-to-date basis, outperforming the Technology Select Sector SPDR Fund. Despite a post-earnings decline, IBM's stock is still up over 18% year-to-date in 2025, indicating overall strong performance with low volatility relative to the market. Upcoming quarterly earnings are expected to show earnings per share growth of about 8.6% year-over-year and revenue growth of approximately 5.1%.
However, there are risks and considerations to be aware of. The main caution lies in the software segment, where revenue growth has decelerated, causing some analysts to take a "show me" stance for the software business's performance in the latter half of the year. Analyst revisions and investor reactions to earnings reports will remain important short-term drivers for IBM’s stock price.
In conclusion, the analyst consensus shows a positive medium-term outlook for IBM, driven by its strategic focus on AI, hybrid cloud, and software. The stock is viewed as offering attractive risk-adjusted returns given its low volatility and growth potential in key enterprise technology markets.
For more information, please view the Disclosure Policy here. On the date of publication, Kritika Sarmah did not have positions in any of the securities mentioned in this article.
In the context of the article, the positive outlook for IBM's stock performance is largely attributed to its strategic focus on AI, hybrid cloud, and software. Analysts, like those at Wedbush and Bank of America, view IBM's positioning in hybrid and AI applications as a promising opportunity, despite recent softness in revenue.
