Scotiabank analyst Divya Goyal maintains $Kyndryl (KD.US)$ with a buy rating, and maintains the target price at $35.
According to TipRanks data, the analyst has a success rate of 39.3% and a total average return of -8.5% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Kyndryl (KD.US)$'s main analysts recently are as follows:
Kyndryl Holdings, lauded as the world's largest provider of IT infrastructure services, has been meticulously building a increasingly profitable business since its 2021 spin-off from IBM. The company is aiming for a resurgence in organic constant-currency growth by the fourth fiscal quarter of 2025. Despite the recent significant share price gains post their optimistic Investor Day on November 21, it is believed that the improved business mix and growth trends have not yet been entirely priced into their current market valuation, indicating potential for additional growth.
Following a recent investor day, there is a more positive outlook on Kyndryl Holdings due to management's announcement of a $300M share buyback program and a projected trajectory to $1B of free cash flow by fiscal 2028, up from $300M anticipated in 2025. This development suggests a potential increase in the company's capital returns, highlighted by the fact that the planned buyback aligns with a single year of expected free cash flow at present levels.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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