Unisys (UIS) has received a new Buy rating, initiated by Needham analyst, Mayank Tandon.
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Mayank Tandon has given his Buy rating due to a combination of factors that suggest a promising outlook for Unisys. The company is positioned to benefit from an improving operating environment, which is expected to lead to growth rates that align with the broader industry. Additionally, Unisys is focused on expanding its profit margins, which is a positive indicator for future financial performance.
Another significant factor in Tandon’s rating is Unisys’s strategic initiatives to address its US pension plan. The plan to reduce and eventually eliminate this pension overhang within 3-5 years is expected to positively impact the company’s valuation. Currently, Unisys shares are trading at a significant discount compared to its peers, making the risk-reward profile attractive. As these financial improvements take hold, there is potential for the valuation gap to close, further supporting the Buy recommendation.