Daiwa: Significantly lowers IBM's target price to $190, maintains a "hold" rating on the stock.

Morgan Stanley released a report stating that IBM's recovery in the second half of the year is feasible, supported by early order backlog and productivity improvements. However, there is almost no room for error in guidance, and a strong rebound in the Z business is needed. The guidance for the third and fourth quarters should clarify whether the second quarter performance was temporary or part of a broader trend of priority adjustments. The bank significantly lowered its target price from $293 to $190 and maintained a "market perform" rating.