UPDATE: Goldman Sachs Downgrades International Business Machines on Potential Weakened Cash Flow

In a report published on Tuesday, Goldman Sachs analyst Bill Shope downgraded International Business Machines (NYSE: IBM) from Buy to Neutral and lowered the price target on the company from $220 to $200.

In the report, Goldman Sachs stated, "Our Buy rating on IBM has been largely based on our view that the company's business model provides a unique source of counter-cyclicality during periods of volatile IT spending. Unfortunately, we believe that pressures on IBM's growth markets and higher-margin revenue streams may intensify in the near term, weakening some of the key sources of IBM's earnings and cash flow resiliency in coming quarters."

International Business Machines closed on Monday at $194.98.