IBM to plunge more than 30% this year on weak earnings, Credit Suisse says

CEO of IBM Ginni Rometty
Neilson Barnard | The New York Times | Getty Images

Credit Suisse reiterated its underperform rating for IBM shares, saying the company's earnings for the December quarter will miss Wall Street's consensus estimate and its forecast for the new year will also disappoint.

IBM will report fourth-quarter financial results on Jan. 19, according to its website.

"We see little inflection within the business fundamentals and specifically see the structural profitability may continue to erode," analyst Kulbinder Garcha wrote in a note to clients Friday. IBM's "2017 guidance [is] likely to miss expectations."