In a report released today, James Faucette from Morgan Stanley maintained a Hold rating on Kyndryl Holdings Incorporation, with a price target of $13.00.
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James Faucette has given his Hold rating due to a combination of factors related to Kyndryl’s growth outlook and capital allocation. He sees the evolving relationship with IBM as a key variable and believes investors need clearer visibility into how this partnership will affect future revenue and margins, especially as the company positions itself for an AI-focused IT services landscape.
At the same time, his recent channel checks suggest that IT spending and bookings have not improved as much as previously anticipated, pushing out the timeline for a meaningful return to growth. While he views Kyndryl’s M&A strategy, including the Solvinity acquisition, as strategically sound, he notes that buybacks have significantly outpaced inorganic investment, and he lowers his price target to $13, implying limited upside at current levels.
According to TipRanks, Faucette is a 4-star analyst with an average return of 2.9% and a 57.86% success rate. Faucette covers the Technology sector, focusing on stocks such as Block, Endava, and Accenture.
In another report released on March 19, TipRanks – xAI also reiterated a Hold rating on the stock with a $12.50 price target.