** Shares of software and consulting company IBM IBM.N fall 1.2% to $210.20 premarket

** Stifel cuts IBM PT to $235 from $290; still implying a 10.5% upside to the stock's last close

** IBM's preliminary Q2 results came in well below consensus last week; The company attributed this reprioritizing capital expenditure toward AI-related compute

** Brokerage says proliferation of AI use cases within enterprises may be affecting new workloads running on IBM's mainframe computing business, which it estimates represent ~20% revenue

** Adds that limited visibility and a seasonally weak Q3 can weigh on stock until the Q4 report

** IBM is scheduled to report Q2 results on July 22

** 14 of 22 brokerages rate the stock "buy" or higher, 10 "hold", and two "sell" or lower; median PT is $263.11 - data compiled by LSEG

** Up to last close, stock has fallen ~28% this year

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