UPDATE: Bank Of America Reiterates On IBM Following EPS Miss

In a report published Tuesday, Bank of America analyst Wamsi Mohan reiterated a Neutral rating on

, but lowered the price target from $200.00 to $185.00. In the report, Bank of America noted, “IBM lowered its 2014 EPS guidance to $16.00-$16.35 (down 2%-4% Y/Y) and highlighted that it no longer expects to meet its prior guidance of ‘at least $20.00' in EPS for 2015; vs. prior Street estimates of $17.89/$19.74 for 2014/2015 EPS. In our opinion, the reset in expectations provides an opportunity for IBM to redefine the broader strategy without the rigidity of near term targets. We expect a detailed business strategy update at the Analyst day in 2015 but near term headwinds will likely keep the stock range bound and we remain Neutral.” International Business Machines Corp. closed on Monday at $169.10.