UPDATE: Bank of America Downgrades IBM

According to a research report published earlier today, Bank of America has downgraded IBM

from Buy to Neutral. In the report, Bank of America said, “We are downgrading IBM to Neutral from Buy, as we believe the potential for material EPS upside and multiple expansion (recent significant move) is somewhat limited. IBM's Software/Services-centric strategy is ahead of peers', and with non-operating levers, double-digit EPS growth is likely. However, the consistent business model and strong market position are reflected in a premium valuation, limiting multiple expansion and near-term upside, in our opinion.” Bank of America maintains its $215 PT on IBM, which closed yesterday at $209.50.