Analyst James Faucette from Morgan Stanley maintained a Hold rating on Kyndryl Holdings Incorporation and decreased the price target to $28.00 from $30.00.
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James Faucette’s rating is based on a combination of factors including Kyndryl Holdings’ strategic approach to mergers and acquisitions and its financial performance. The company’s recent acquisition of Solvinity highlights its commitment to enhancing its service offerings and expanding its presence in Europe, which is seen as a positive step towards long-term value creation. However, the financial metrics present a mixed picture, with a slight revenue miss in the recent quarter making the FY26 growth targets appear more challenging.
Despite these challenges, there is potential for strong execution in the latter half of the fiscal year, supported by increased focus on mergers and acquisitions and share repurchases. These actions provide growth opportunities and valuation support, but the reliance on a significant ramp-up in the back half of the fiscal year introduces uncertainty. Therefore, the Hold rating reflects a cautious optimism, acknowledging both the strategic initiatives and the risks associated with achieving the projected growth targets.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $29.00 price target.