Morgan Stanley issued a cautious note on IBM ( IBM) following its second-quarter earnings report, maintaining an Equal-Weight rating and reiterating its $253-per-share price target.

The current consensus forecasts for IBM's forthcoming earnings stand at $2.66 per share on revenue of $16.58 billion. This reflects an increase from the year-ago quarter, which saw earnings of $2.43 per share on revenue of $15.77 billion.

IBM ( IBM) is down 7.6% today despite reporting some solid headline numbers. Revenue of $16.98 billion beat the $16.59 billion consensus, adjusted EPS of $2.8 cleared the $2.65 estimate, and full-year free-cash-flow guidance was nudged north of $13.5 billion.