Jan 22 Shares in IBM Corp opened down
about 5 percent on Wednesday, a day after it missed revenue
expectations, hurt by weak demand for its servers and storage
equipment, particularly in growth markets such as China.
Barclays and JPMorgan also said it would be an uphill task
for IBM to meet its operating earnings forecast for 2014 and
2015 without the help of taxes and gains.
"With the end of the mainframe cycle and weakness in
emerging markets, coupled with pressure from cloud, revenue
should remain pressured," Barclays analysts wrote in a note to
IBM and rivals such as Oracle and SAP are
racing to meet surging demand for web-based software products,
better known as cloud computing.
IBM on Tuesday forecast that full-year 2014 adjusted profit
would beat analysts' expectations and also affirmed its 2015
target for operating EPS of at least $20 per share.
Barclays lowered its price target to $173 from $180 while
JPMorgan cut its price target to $175 from $179.
IBM's shares were trading down 3.5 percent at $181.73 in
early trading on the New York Stock Exchange, after closing at
$188.43 on Tuesday.
(Reporting By Lehar Maan in Bangalore; Editing by Savio