Joseph Vafi, an analyst from Canaccord Genuity, maintained the Hold rating on Unisys (UIS – Research Report). The associated price target is $6.50.
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Joseph Vafi has given his Hold rating due to a combination of factors surrounding Unisys’s current market position and future prospects. Although Unisys is making headway with its growth initiatives and has positioned its new service offerings competitively within its target markets, there are concerns about its legacy service portfolio, which is susceptible to fluctuations influenced by macroeconomic or industry trends. Additionally, with approximately 60% of its revenue coming from outside the United States, foreign exchange factors present another layer of complexity.
Despite these challenges, Unisys is experiencing a positive shift towards next-generation services, which now account for over 40% of service revenue, potentially driving future growth. The company’s Clearpath platform is showing strength, benefiting from increased demand from existing clients, albeit without significant new client acquisitions. While Unisys is strategically aligning itself with emerging technologies like AI and quantum computing, which could transform its service offerings, the current financial performance, marked by a slight dip in Q4 revenue and cautious guidance for 2025, leads to a Hold recommendation as the company continues its transformation and seeks to accelerate organic growth.