IBM trades 10.9% below Wall Street's consensus target of $256.69.
Last 12 months price action with 12-month analyst target path
The base valuation assumes IBM achieves its forward estimates and maintains a stable P/E multiple of 18.8x. This scenario reflects the blended consensus of 51 Wall Street analysts, balancing both positive catalysts and macroeconomic headwinds over the next 12 months.
As of September 23, 2026, International Business Machines Corporation (IBM) has a Wall Street consensus price target of $256.69, based on estimates from 51 covering analysts. With the stock currently trading at $231.38, this represents a potential upside of +10.9%. The company has a market capitalization of $217.99B.
Analyst price targets range from a low of $175.00 to a high of $350.00, representing a 68% spread in expectations. The median target of $260.00 aligns closely with the consensus average. The wide target spread reflects significant disagreement on fair value.
The current analyst consensus rating is Buy, with 24 analysts rating the stock as a Buy or Strong Buy,22 rating it Hold, and 5 rating it Sell or Strong Sell. The mixed ratings reflect uncertainty about near-term direction.
From a valuation perspective, IBM trades at a trailing P/E of 20.7x and forward P/E of 18.8x. The forward PEG ratio of 1.52 indicates reasonable valuation for growth. Analysts expect EPS to grow +9.4% over the next year.
Our proprietary valuation model, which blends historical multiples with forward estimates, suggests a base-case price target of $294.94, with bear and bull scenarios of $185.81 and $388.62 respectively. Model confidence stands at 54/100, reflecting moderate uncertainty in projections.
| Company | Market Cap | Price | Target | Upside Potential | Rating | Fwd P/E | Analysts |
|---|---|---|---|---|---|---|---|
 ACNAccenture plc | $112.4B | $183.72 | $200.65 | +9.2% | Buy | 13.3x | 53 |
 HPEHewlett Packard Enterprise Company | $80.8B | $61.04 | $67.75 | +11.0% | Hold | 16.0x | 39 |
 DXCDXC Technology Company | $1.8B | $10.93 | $12.83 | +17.4% | Hold | 3.4x | 24 |
 CTSHCognizant Technology Solutions Corporation | $26.4B | $58.68 | $64.25 | +9.5% | Hold | 10.2x | 51 |
 INFYInfosys Limited | $43.7B | $10.76 | $11.69 | +8.6% | Hold | 14.1x | 40 |
 WITWipro Limited | $16.7B | $1.69 | $7.35 | +334.9% | Hold | 0.1x | 21 |
 MSFTMicrosoft Corporation | $3.7T | $498.00 | $553.39 | +11.1% | Buy | 25.2x | 82 |
 ORCLOracle Corporation | $428.9B | $149.12 | $236.52 | +58.6% | Buy | 18.3x | 87 |
 SAPSAP SE | $245.5B | $210.68 | $237.25 | +12.6% | Buy | 29.9x | 43 |
 NOWServiceNow, Inc. | $141.6B | $137.00 | $142.54 | +4.0% | Buy | 33.7x | 69 |
Quick answers to the most common questions about buying IBM stock.
International Business Machines Corporation (IBM) has a consensus 12-month price target of $256.69, implying 10.9% upside from $231.38. The 51 analysts covering IBM see moderate appreciation potential.
IBM has a consensus rating of "Buy" based on 51 Wall Street analysts. The rating breakdown is mixed, with 22 Hold ratings making up the largest segment. The consensus 12-month price target of $256.69 implies 10.9% upside from current levels.
With a forward P/E of 18.7959x, IBM trades at a relatively low valuation. The consensus target of $256.69 implies 10.9% appreciation, suggesting meaningful undervaluation.
The most bullish Wall Street analyst has a price target of $350 for IBM, while the most conservative target is $175. The consensus of $256.69 represents the median expectation. Our quantitative valuation model projects a bull case target of $389 based on optimistic growth and margin assumptions. These targets typically reflect 12-month expectations.
IBM is heavily covered by Wall Street, with 51 analysts providing price targets and ratings. Of these, 1 have Strong Buy ratings, 23 have Buy ratings, 22 recommend Hold, and 5 have Sell or Strong Sell ratings. Higher analyst coverage generally indicates greater institutional interest and more reliable consensus estimates.
The 12-month IBM stock forecast based on 51 Wall Street analysts shows a consensus price target of $256.69, with estimates ranging from $175 (bear case) to $350 (bull case). The median consensus rating is "Buy". Our proprietary valuation model produces a base case fair value of $295, with bear/bull scenarios of $186/$389.
Our quantitative valuation model calculates IBM's fair value at $295 (base case), with a bear case of $186 and bull case of $389. The model uses discounted cash flow analysis, historical growth rates, and margin mean-reversion to project FY+2 earnings, then applies an appropriate P/E multiple. The model confidence score is 54/100.
IBM trades at a forward P/E ratio of 18.8x based on next-twelve-months earnings estimates compared to a trailing P/E of 20.7x. The lower forward P/E indicates analysts expect earnings growth. A forward P/E is useful for comparing valuations when earnings are expected to change significantly.
Wall Street analysts are optimistic on IBM, with a "Buy" consensus rating and $256.69 price target (10.9% upside). 24 of 51 analysts rate it Buy or Strong Buy. This information is for educational purposes only. Always conduct your own research, consider your financial situation, and consult a financial advisor before making investment decisions.
IBM analyst price targets range from $175 to $350, a 68% wide spread indicating significant analyst disagreement. Differences stem from varying assumptions about revenue growth, profit margins, competitive dynamics, and valuation multiples. The $256.69 consensus represents the middle ground. Our model's $186-$389 range provides an independent fundamental perspective.
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