IBM Stock Price Prediction: Analysts Expect $285 by 2030, Valuation Above Tech Peer Averages

IBM stock is currently trading at $239, with a market cap of $223.30 billion and a one-year return of +23%. Analysts predict IBM could hit $285 by 2030. The stock has fluctuated with sector and market sentiment, with a trailing P/E of 38.66 and forward P/E of 21.74. Investors are cautiously optimistic about IBM's cloud transition but wary of near-term earnings risk.

International Business Machines Corp. (NYSE: IBM) has been a stalwart in the technology sector for decades, and its stock has recently reflected a mix of cautious optimism and market volatility. As of July 2025, IBM stock is trading at $239, with a market cap of $223.30 billion and a one-year return of +23% [1]. Analysts predict that IBM could reach $285 by 2030, reflecting a long-term bullish view on the company's transition to hybrid cloud, artificial intelligence (AI), and consulting services [1].

The stock's valuation metrics are notable. IBM's trailing P/E ratio stands at 38.66, while the forward P/E ratio is 21.74. These ratios suggest that investors are cautiously optimistic about IBM's cloud transition but wary of near-term earnings risks. The stock has swung substantially, trading well below its 50-day and 200-day simple moving averages (SMA), which mirrors a growing sense of bearish sentiment on Wall Street [1].

Analyst sentiment remains mixed, with a consensus Hold rating among 22 analysts polled by Benzinga. The consensus price target sits at $236.48, with a high of $325 from Wedbush and a low of $140 from MoffettNathanson [1]. The three most recent ratings from UBS, JP Morgan, and BofA Securities average a $266.67 target, implying an 11.3% potential upside from current levels [1].

Looking at IBM's valuation compared to its peers and industry averages, Simply Wall St places IBM as significantly below fair value, with a fair value estimate of $259.51 [2]. This valuation score of 2/6 suggests that IBM is trading below its estimated fair value, though not by a significant amount. The Price-To-Earnings (P/E) ratio for IBM is 38.7x, which is higher than the industry average of 16.7x [2].

IBM's long-term price forecasts vary widely. CoinCodex projects IBM's price could range from $130 to $285 by 2030, with an average estimate around $171 [1]. This spread underscores the uncertainty surrounding IBM's transformation and market adaptability. Investors banking on IBM for long-term exposure to enterprise tech must be prepared for ongoing volatility and periodic business model reinvention.

In conclusion, IBM stock presents a mix of opportunities and risks. Investors should closely monitor the company's execution of its cloud and AI strategies, as well as its ability to maintain or grow its iconic dividend. The stock's valuation, while elevated compared to historical averages, reflects a cautious optimism about IBM's future prospects.

References:
[1] https://www.benzinga.com/money/ibm-stock-price-prediction
[2] https://simplywall.st/stocks/us/software/nyse-ibm/international-business-machines/valuation