IBM should take the "brave step" and drastically reset its full-year earnings per share outlook to $13.00 or lower, Barclays analyst Mark Moskowitz tells investors in a research note.

He believes the company's narrative is "becoming tedious" with a lot of investments in next-generation technology generating little revenue impact. The analyst cut his below-consensus estimates for 2017 and 2018 and dropped his price target for IBM shares to $132 from $141. The technology company closed Friday up 61c to $154.24.

Moskowitz keeps an Underweight rating on the shares. He views IBM's valuation as "stretched" and does not think cost cuts will be enough to counter increasing exposure to cloud-related or "as-a-service" revenue that carries lower revenue and profit.