Kyndryl Holdings: Strong Financial Health and Attractive Valuation Justify Buy Rating

Analyst Tyler DuPont CFA of Bank of America Securities maintained a Buy rating on Kyndryl Holdings Incorporation (KD – Research Report), retaining the price target of $44.00.

Tyler DuPont CFA has given his Buy rating due to a combination of factors that highlight Kyndryl Holdings Incorporation’s potential for growth and value. Despite a slightly conservative revenue guidance for fiscal year 2026, the company has shown strong performance in other areas, such as earnings per share (EPS) and free cash flow (FCF), which have exceeded expectations. This indicates a robust financial health that can support future growth.
Furthermore, Kyndryl’s impressive bookings momentum, with a significant increase in large deal wins, underscores its ability to secure substantial contracts and maintain a strong pipeline. The company’s contract portfolio mix is improving, and with its shares trading at a relatively attractive valuation, Tyler DuPont sees a favorable risk/reward scenario. These elements collectively justify the Buy rating, as they suggest a promising outlook for the company’s stock performance.

In another report released on April 23, Susquehanna also maintained a Buy rating on the stock with a $43.00 price target.

KD’s price has also changed moderately for the past six months – from $27.550 to $33.140, which is a 20.29% increase.