Kyndryl Holdings initiated with an Equal Weight at Morgan Stanley

Morgan Stanley initiated coverage of Kyndryl Holdings (KD) with an Equal Weight rating and $30 price target which implies 2% downside. The stock’s 14% drop year-to-date reflects skepticism around Kyndryl’s ability to achieve its fiscal 2028 targets, the analyst tells investors in a research note. However, the firm says the 35% rally over the last twelve months suggests the market still expects some degree of improvement in company’s growth and profitability.