IBM (NYSE:IBM) was initiated with a Neutral with a $145 price target at JPMorgan on Friday.

The firm’s analysts told investors in a note that the company’s tailwinds — its transformation and AI opportunity — are offset by headwinds ahead.

“Following the recent spinoff of the company’s managed infrastructure services business, IBM is cleaner and easier to follow, with over 70% of the business now attributable to the higher-growth Software and Consulting businesses well positioned to benefit from attractive secular tailwinds,” said the analysts.

“We forecast fundamental improvement in the back half of the year, but think the setup for the stock could be challenging as investors continue to weigh risk to numbers from potential macroeconomic and mainframe cycle headwinds,” they added.

JPMorgan believes greater consistency and more favorable macro conditions are needed for fundamental upside and multiple expansion in IBM. As a result, the firm’s Neutral rating reflects its view of balanced risk-reward at current levels.