Kyndryl Holdings assumed with an Outperform at Scotiabank

Scotiabank assumed coverage of Kyndryl Holdings (KD) with an Outperform rating and $40 price target The company’s revenue mix, relative to peers, skews much more toward “highly recurring and sticky” managed IT with very little exposure to discretionary consulting revenue, the analyst tells investors in a research note. The firm is positive on Kyndryl’s gross profit growth strength and highly recurring mix of revenue.