1157 ET - IBM will need to strike some deals in order to hit its target for 5% constant-currency revenue growth next year, Morgan Stanley analysts write in a note. Even assuming a better-than-expected infrastructure cycle and an acceleration in organic software growth next year, the company is not on track to hit the target, the analysts write. "This means we are on IBM M&A watch for the remainder of the year, as it's the final bridge towards IBM reaching Street revenue forecasts in 2027, in our view," they write. They maintain an equal-weight rating and bump up their price target by $2 to $240. Shares of IBM fall 1.3% to $248.27.
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