The new price target represents only a slight 4% upside from the stock's previous closing price of $134.09.
Analyst Munjal Shah forecasts the company's legacy tech businesses will have negative pressure in 2020, with 2021 being even more challenging for the segment as the returns from the company's acquisition of Red Hat become incrementally weaker.
Last week, IBM reported third-quarter results with earnings falling nearly 22% year over year while revenue declined nearly 4% and missed analysts estimates for the period.
"In the third quarter, the in-quarter revenue did not come in as expected we had lower customer business volumes in certain markets and some multi-national clients versus our expectations. And this impacted the growth rate by an additional point," Chief Financial Officer James Kavanaugh told investors on a conference call.
IBM shares were down 1.3% to $132.39 on Monday.
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