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IBM Stock Forecast & Price Prediction for 2021, 2022-2025 and Beyond

2021-03-29

2021-03-29

IBM Stock Price Forecast: 2021, and BeyondJana Kane

Tech giant IBM beat its earnings expectations, despite a 3% drop in turnover in 2020. But the drop in turnover for the third consecutive quarter disappointed investors. The cloud business is a major growth driver (+ 7%), while the traditional activities (-4%) weigh on growth.

The group, therefore, wants to split off these more ‘traditional’ activities from the fast-growing ones. The legacy business (especially IT infrastructure services) has to go its own way in a separate, listed vehicle. The 110-year-old company, which is included in major US indices, the Dow Jones and S&P 500, wants to innovate and become a hybrid cloud technology leader. Still, the company’s stocks are not a part of the famous Nasdaq 100 index as the company isn’t listed on the Nasdaq stock exchange.

The article covers the following subjects:

Customers partly use their own servers and partially rent storage and processing power from IBM. The multi-billion acquisition of Red Hat, where sales grew by 17%, will accelerate the transition process. What will happen this year? What do the experts and the technical analysis say? What is the IBM stock price prediction for the years ahead? Discover all of this and more in this blue chips IBM stock outlook.

IBM: a Recent Historical Overview

There are technology stocks that are totally escaping the boom in the industry. One of them is IBM. It struggles with the slowdown in growth in its traditional activities (technology and business services, hardware). Despite the divestment of low-growth activities and acquisitions in the cloud, revenues fell by more than 100 billion over the past ten 10 years. With former CEO Rometty at the helm, [IBM][1] prioritized dividends (USD 45.2 billion) and share buybacks (USD 75 billion) over innovation. Partly because of this, the cloud train was missed entirely. Meanwhile, this unwieldy tanker is slowly but surely turning:

  • IBM [led the worldwide patent list][2] in 2019. The group filed 9,262 patents. The innovation train at IBM is, therefore, back on track. The number of patents is significantly above the level of Alphabet and Apple, to name but a few. Innovative companies are ultimately rewarded.
  • Developments towards cloud, artificial intelligence, and business analysis software are driving recurring revenues up. In the second quarter, these already accounted for 60% of group turnover, an important parameter for the stability in the turnover evolution.
  • The choice of new CEO did not happen overnight. [The man is the driving force][3] behind the development of a hybrid cloud strategy and the successful acquisition of Red Hat. Obviously, we should not expect the tide to be turned entirely in 2021, but rumors are circulating that Arvind Krishna clearly wants to get rid of the “old services”. Is a spin-off or sale on the horizon?
  • Hybrid cloud alone is certainly not the holy grail. Many multinationals rely on Microsoft and Amazon.com to store their data in the public cloud. However, IBM is convinced that companies will eventually return to “proprietary servers” combined with “public cloud” (hybrid model). Only then will IBM be in the front row to take advantage of this, but as mentioned, this trend has certainly not started yet. Another promising trend that of quantum computers is also still in its infancy.

IBM Stock Current Price

The IBM stock price for today (30.03.2021) is $135.75 You can refer back to this article to see the IBM stock price tomorrow.

Below is an interactive IBM-to-dollar real time price chart that shows the IBM stock rate for buying and selling:

IBM Stock Price Prediction: What do Experts Say?

[According to CNN Business][4], a total of 15 analysts offering 12-month price forecasts for International Business Machines Corp have a median [IBM price][1] target of 140.00, with a high estimate of 165.00 and a low estimate of 115.00. The median estimate represents a +5.21% increase from the last price of 133.07.

Current investment analyst recommendations are to hold stock in International Business Machines Corp. This rating has held steady since March, when it was unchanged from a hold rating.

Technical Analysis

International Business Machines Corporation is within an approximate horizontal trend channel in the medium to long term. This indicates that investors are uncertain and are waiting for signals of further direction. A break upwards will be a positive signal, while a break downwards will be a negative signal. An inverse head and shoulders formation is under development.

A decisive break of the resistance at 133, ideally with an increase in volume, signals a further rise. The stock has marginally broken up through the resistance at $ 128. An established break predicts a further rise. The RSI curve shows a rising trend, which is an early signal for a possible trend reversal upwards for the price. The stock is overall assessed as technically positive for the medium long term.

IBM Stock Forecast 2022

In the middle of 2021, we expect to see $135 per 1 IBM. In the first half of 2022, the IBM price will climb to $151; in the second half, the price could be going down as low as 113 but rise to $140 by the end of the year. Below is an IBM share price forecast for 2022:

Year

|

Mo

|

Min

|

Max

|

Close

|

Mo,%

|

Total%

—|—|—|—|—|—|—

2022

|

Jan

|

124

|

140

|

132

|

-5.0%

|

9.3%

2022

|

Feb

|

127

|

143

|

135

|

2.3%

|

11.8%

2022

|

Mar

|

133

|

151

|

142

|

5.2%

|

17.6%

2022

|

Apr

|

127

|

143

|

135

|

-4.9%

|

11.8%

2022

|

May

|

120

|

136

|

128

|

-5.2%

|

6.0%

2022

|

Jun

|

126

|

142

|

134

|

4.7%

|

11.0%

2022

|

Jul

|

126

|

142

|

134

|

0.0%

|

11.0%

2022

|

Aug

|

125

|

141

|

133

|

-0.7%

|

10.2%

2022

|

Sep

|

118

|

134

|

126

|

-5.3%

|

4.4%

2022

|

Oct

|

113

|

127

|

120

|

-4.8%

|

-0.6%

2022

|

Nov

|

118

|

134

|

126

|

5.0%

|

4.4%

2022

|

Dec

|

124

|

140

|

132

|

4.8%

|

9.3%

Source: Longforecast

IBM Stock Forecast 2023

IBM will start 2023 at approximately $145, then soar to a maximum of approximately $153 within the first six months of the year, and finish 2023 at a maximum of $122.32. Below is an IBM share price forecast for 2023:

Month

|

Rate Forecast

|

MIN Rate

|

MAX Rate

|

Volatility, %

—|—|—|—|—

Jan

|

145.90

|

139.80

|

150.72

|

7.24 %

Feb

|

132.10

|

127.01

|

140.38

|

9.52 %

Mar

|

138.35

|

130.59

|

150.22

|

13.07 %

Apr

|

141.09

|

134.88

|

144.97

|

6.96 %

May

|

147.30

|

140.65

|

153.62

|

8.44 %

Jun

|

141.63

|

131.03

|

153.78

|

14.79 %

Jul

|

126.20

|

119.96

|

135.78

|

11.66 %

Aug

|

115.93

|

112.23

|

120.01

|

6.48 %

Sep

|

104.33

|

100.19

|

110.98

|

9.72 %

Oct

|

100.08

|

92.26

|

108.67

|

15.09 %

Nov

|

104.92

|

97.42

|

110.81

|

12.08 %

Dec

|

112.42

|

105.75

|

122.32

|

13.55 %

Source: Leoprophet.com

Long Term IBM Stock Price Prediction 2025-2030

In this period, the IBM price would rise from $227 to $288. By the end of 2030, the IBM stock price should reach $288. Please remember that such a long-term forecast is speculation; it cannot be seen as realistic or reliable and is subject to change on a daily basis. Below is an IBM share price forecast for the period 2025 – 2030:

Year

|

Mid-Year

|

Year-End

|

Tod/End,%

—|—|—|—

2025

|

$227

|

$233

|

+75%

2026

|

$234

|

$236

|

+77%

2027

|

$247

|

$252

|

+89%

2028

|

$257

|

$263

|

+98%

2029

|

$269

|

$275

|

+107%

2030

|

$281

|

$288

|

+116%

Source: Coinpriceforecast

How Has the Price of IBM Stock Changed Over Time?

We can’t predict with certainty what the price of one IBM stock will be in the next ten years, but we can look back at the price history. This can help us make more reliable predictions. Below is a historical timeline that shows how the price of IBM stock changed over the past ten years:

Source: Macrotrends.net

Factors that Can Affect the IBM Stock Price

Various factors may affect the [IBM stock price][1]. Below are six critical factors that any IBM trader or investor should analyze.

Factor 1 – Product Line Diversification

Particular attention should be paid to the company’s plans to diversify its product lineup, as this is one of IBM’s major risk factors today.

Factor 2 – Partnerships

Also, keep a close eye on strategic alliances and partnerships that IBM is likely to form with companies in various industries.

Factor 3 - R&D Capabilities

IBM’s R&D capabilities are also an important development point. Innovation is the basis of the company’s competitiveness in its sector.

Factor 4 – Industry News and Company Publications

It goes without saying that you must also follow all publications on the company’s results and, in particular, the achievement of the objectives announced in the group’s various strategic plans alongside industry news. This data is some of the most closely monitored by investors and substantially impacts IBM’s projected stock price in the short and medium-term.

Factor 5 – IT Industry

The IT industry’s economic health in general, upon which IBM’s assignments depend heavily, is very important and should be integrated into your fundamental analysis before trading IBM stocks.

Factor 6 – Competition

Conduct a full study of the competition and the evolution of the market shares of any large company operating in the IT sector.

What is the IBM Stock Future? Are IBM Stocks a Good Investment?

First, the IBM brand is, of course, one of the strongest in the information technology sector in the international market. This popularity and brand awareness result from the popularity of the products the group offers and the company’s expertise in providing its customers with the most modern hardware and software solutions.

Thanks to these capabilities, the IBM group can attract new prospects and retain its customers by offering them existing products and new products regularly. Below is a price prediction chart for 2021:

Year

|

Mo

|

Min

|

Max

|

Close

|

Mo,%

|

Total%

—|—|—|—|—|—|—

2021

|

Mar

|

119

|

139

|

131

|

8.3%

|

8.5%

2021

|

Apr

|

130

|

146

|

138

|

5.3%

|

14.3%

2021

|

May

|

130

|

146

|

138

|

0.0%

|

14.3%

2021

|

Jun

|

124

|

140

|

132

|

-4.3%

|

9.3%

2021

|

Jul

|

127

|

143

|

135

|

2.3%

|

11.8%

2021

|

Aug

|

133

|

151

|

142

|

5.2%

|

17.6%

2021

|

Sep

|

127

|

143

|

135

|

-4.9%

|

11.8%

2021

|

Oct

|

124

|

140

|

132

|

-2.2%

|

9.3%

2021

|

Nov

|

125

|

141

|

133

|

0.8%

|

10.2%

2021

|

Dec

|

130

|

146

|

138

|

3.8%

|

14.3%

Source: Longforecast

The IBM group also has extensive experience and expertise in managing its manufacturing processes and materials. Indeed, the group is one of the most innovative in the world and has been for a long time, which has also given it time to implement effective business strategies and human resource development programs within the company with the creation of talent and the continuous development of the skills of its employees. The group also plays a leading role in the development and innovation of the IT industry. In this sense, IBM draws much of its strength from its organizational culture.

Another strong point of IBM that is important to highlight here is, of course, its intellectual property portfolio. The company is constantly applying for new patents and derives its strength from owning the largest number of patents strengthening the company and making it more competitive.

Finally, the group has long been able to realize large economies of scale that allow it to remain competitive and allow its industrial customers to benefit from low-cost products and thus remain competitive despite the high cost of new technological developments.

These elements and strengths show us how IBM has the necessary strengths to maintain its growth in the medium and long term despite extreme competition. Interested in [IBM stocks][1]? Make sure to create a free demo account on LiteForex! This way, you’ll be up to date with our free newsletter, and the user-friendly interface will come in handy if you decide to start investing or stock trading.

IBM Stock Price Prediction FAQ

Price chart of IBM in real time mode

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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  1. my.liteforex.com/trading/chart?symbol=%23IBM
  2. newsroom.ibm.com/2020-01-14-IBM-Tops-U-S-Patent-List-for-2019
  3. www.crn.com/news/cloud/ibm-ceo-arvind-krishna-s-deeply-deeply-passionate-plan-to-make-ibm-red-hat-no-1-in-hybrid-cloud-ai
  4. money.cnn.com/quote/forecast/forecast.html?symb=IBM