IBM Shares Fall 24% This Week, Worst Decline Since 1968, As Citi Cuts Price Target By 32%

IBM shares fell nearly 24% this week, heading for their worst single-week decline since 1968, after the company warned of weaker-than-expected performance in its mainframe business during preliminary second-quarter results.

Citi analyst Fatima Boolani cut her price target on IBM to $255 from $375 while maintaining a Buy rating, according to TheFly. JPMorgan also reduced its target to $250 from $291 while reiterating an Overweight rating. Citi cited IBM's failure to recapture delayed mainframe deals and expects its organic software business to remain largely flat in the near term. CEO Arvind Krishna acknowledged in a letter to investors that the company did not adapt quickly enough to changing market conditions, with clients shifting spending and several large deals failing to close as expected.