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 clients.
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.