IBM price target lowered to $209 from $220 at BofA

BofA analyst Wamsi Mohan lowered the firm’s price target on IBM (IBM) to $209 from $220 and keeps a Buy rating on the shares, noting that IBM saw weakness in Consulting, including a lengthening of backlog duration, as expected. In addition, IBM announced its intention to acquire HashiCorp (HCP) for $6.4B in cash, noted the analyst, who sees deal being in line with IBM’s focus on hybrid cloud and AI. HashiCorp’s growth has been declining, but the firm believes IBM has the ability to drive cost synergies and drive revenue growth across its larger customer base.