International Business Machines (IBM) shares have seen interesting movement over the past month, drawing attention from investors tracking performance trends within the technology sector. The company’s recent results provide some context for the stock's latest price action.

IBM’s share price has surged in recent months, with a notable 24.5% share price return over the past 90 days. Its one-year total shareholder return stands at a solid 36.8%. Momentum is clearly building, likely reflecting both optimism about growth potential and shifting risk perceptions as investors respond to the company’s ongoing transformation.

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But with IBM’s shares outperforming analyst price targets and trading above their intrinsic value, the key question is whether fresh upside remains ahead or if today’s valuations are already pricing in its future growth story.

Most Popular Narrative: 5.6% Overvalued

With IBM’s last close price at $303.21 compared to the narrative’s fair value estimate of $287.09, the stock is seen as trading above its calculated intrinsic value. This sets the stage for a closer look at what is driving that higher price tag in the eyes of the most-followed analysts.

IBM’s focused strategy on hybrid cloud and AI is driving solid revenue growth, providing cost savings, productivity gains, and scalability for clients. This approach is expected to continue supporting their revenue trajectory.

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Result: Fair Value of $287.09 (OVERVALUED)

However, uncertainty in the broader macroeconomic environment or a slowdown in IBM’s key software segments could quickly challenge the prevailing bullish outlook.

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A great starting point for your International Business Machines research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.