Morgan Stanley analyst Katy Huberty, who has a neutral rating and a $164 price
target, said the spinoff has given her in-line-to-below expectations for the report
given the changes IBM outlined.
“Ahead of the separation, IBM now has to go back to customers and split exisiting
long-term contracts into two separate core IBM and Kyndryl contracts,” Huberty said.
“Most of this disruption was expected to take place in the months leading up to the
spin (planned for November 3rd, 2021) and could result in customers 1) pausing new
net spend until contract negotiations are compete, and/or 2) taking the opportunity to
re-negotiate pricing and/or cancel deals with IBM.”
“While we’re not calling for a material miss, we believe disruption from contract
separations/renegotiations could be a contributing factor to slower than expected
revenue growth and that September quarter results could be messy,” Huberty said.
Could get "messy"? Messier than they already are I think she means.
https://www.marketwatch.com/story/ibm-earnings-are-about-to-change-and-could-be-messy-here-is-what-you-need-to-know-11634331524