Morgan Stanley lowered the firm’s price target on Kyndryl (KD) to $13 from $28 and keeps an Equal Weight rating on the shares. The firm had expected a more meaningful recovery in IT budgets and bookings to start 2026, but its latest checks indicate the environment remains largely unchanged, says the analyst, who updated the firm’s estimates. Investors remain “particularly focused” on the company’s evolving relationship with IBM (IBM), adds the analyst, who thinks additional disclosure around the revenue and margin implications of that relationship will be important.
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