It’s Wednesday morning and it’s already been a tough week for IBM

Gigaom

Earlier this year, IBM(s ibm) reportedly tried to sell off its server business to Lenovo, which already owns IBM’s former laptop business. That deal didn’t work out, but IBM might be wishing it had right about now, given the latest news out of its hardware unit.

On Tuesday, Credit Suisse downgraded IBM to “underperform”  citing headwinds to growth. In a research note, CS analysts wrote:

“Organically we believe IBM is effectively in decline, and we see rising headwinds ahead with: i) 34% of gross profit dollars coming from Mainframe and UNIX hardware and associated software, which we believe are under pressure; ii) the shift to cloud continues to present risks given IBM’s technology positioning; and iii) strategic portfolio management is likely to have less of an impact going forward given the smaller potential for divestitures (x86 and Microelectronics), and multiple expansion in the software space limits IBM’s ability to acquire…

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