J.P. Morgan analyst Tien Tsin Huang has reiterated their bullish stance on KD stock, giving a Buy rating yesterday.
Tien Tsin Huang has given his Buy rating due to a combination of factors that reinforce confidence in Kyndryl Holdings’ future performance. Despite a recent short report suggesting potential cost increases from IBM, Huang believes these claims are overstated and not a significant threat to Kyndryl’s financial health. The company has shown strong visibility into its near-term revenue dynamics and is expected to achieve revenue growth, which could lead to a favorable comparison with competitors like DXC.
Furthermore, Kyndryl’s strategic position in the industry, particularly its vendor-agnostic approach, provides a competitive edge. The company is well-positioned to offer estate-level services to large enterprises, insulating it from competition with cloud vendors. Additionally, concerns about capitalization and audit issues are not seen as critical, with Kyndryl maintaining steady cash flow and addressing any audit-related matters. These factors collectively support the confidence in Kyndryl’s ability to meet its financial targets and justify the Buy rating.
According to TipRanks, Tsin Huang is a 5-star analyst with an average return of 7.2% and a 58.20% success rate. Tsin Huang covers the Technology sector, focusing on stocks such as Accenture, Fidelity National Info, and Globant SA.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $44.00 price target.