Kyndryl (NYSE:KD) Stock Gets Price Target Bump from Scotiabank

Key Points

• Scotiabank raised its Kyndryl price target from $15 to $19 while maintaining a “sector perform” rating, implying 16.91% upside from the prior close.
• Analyst views remain cautious overall: MarketBeat reports a consensus “Reduce” rating and a $17.67 average target, with seven analysts at Hold and two at Sell.
• Kyndryl beat quarterly estimates with adjusted EPS of $0.42 versus $0.38 expected and revenue of $3.65 billion versus $3.62 billion expected; however, revenue declined 1.9% year over year.

Kyndryl (NYSE:KD - Get Free Report) had its price objective hoisted by analysts at Scotiabank from $15.00 to $19.00 in a research report issued on Thursday, Benzinga reports. The firm presently has a "sector perform" rating on the stock. Scotiabank's price objective would indicate a potential upside of 16.91% from the company's previous close.

Other equities analysts have also issued reports about the company. Zacks Research raised Kyndryl from a "strong sell" rating to a "hold" rating in a research note on Monday, September 14th. Weiss Ratings restated a "sell (d)" rating on shares of Kyndryl in a research note on Tuesday. BMO Capital Markets reissued a "market perform" rating and issued a $16.00 price target on shares of Kyndryl in a research report on Thursday, August 6th. JPMorgan Chase & Co. boosted their price objective on Kyndryl from $13.00 to $14.00 and gave the stock an "underweight" rating in a report on Monday, August 10th. Finally, Susquehanna upped their target price on shares of Kyndryl from $13.00 to $16.00 and gave the stock a "neutral" rating in a research note on Thursday. Seven equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus target price of $17.67.

Kyndryl Price Performance

Shares of Kyndryl stock traded down $0.59 during trading on Thursday, reaching $16.25. 4,318,394 shares of the company's stock were exchanged, compared to its average volume of 4,519,696. The firm's 50-day moving average price is $12.90 and its 200 day moving average price is $13.45. The company has a market cap of $3.54 billion, a P/E ratio of 44.04 and a beta of 1.62. Kyndryl has a 1-year low of $10.10 and a 1-year high of $27.83. The company has a debt-to-equity ratio of 1.96, a quick ratio of 0.85 and a current ratio of 0.85.

Kyndryl (NYSE:KD - Get Free Report) last issued its earnings results on Wednesday, November 4th. The company reported $0.42 earnings per share for the quarter, beating analysts' consensus estimates of $0.38 by $0.04. Kyndryl had a net margin of 0.58% and a return on equity of 12.24%. The firm had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.62 billion. During the same quarter last year, the business posted $0.38 earnings per share. The company's quarterly revenue was down 1.9% on a year-over-year basis. As a group, research analysts anticipate that Kyndryl will post 1.36 earnings per share for the current year.

Institutional Investors Weigh In On Kyndryl

A number of institutional investors and hedge funds have recently made changes to their positions in KD. Lido Advisors LLC purchased a new position in Kyndryl in the 3rd quarter worth $184,000. AlphaCore Capital LLC bought a new position in Kyndryl during the 3rd quarter valued at approximately $113,000. Fulcrum Asset Management LLP raised its holdings in shares of Kyndryl by 291.0% during the third quarter. Fulcrum Asset Management LLP now owns 122,202 shares of the company's stock valued at $1,380,000 after acquiring an additional 90,952 shares in the last quarter. Ethic Inc. increased its position in shares of Kyndryl by 192.5% during the third quarter. Ethic Inc. now owns 29,925 shares of the company's stock valued at $337,000 after buying an additional 19,693 shares during the period. Finally, Kestra Advisory Services LLC lifted its holdings in Kyndryl by 179.4% in the third quarter. Kestra Advisory Services LLC now owns 32,356 shares of the company's stock worth $364,000 after buying an additional 20,775 shares during the period. Hedge funds and other institutional investors own 71.53% of the company's stock.

Kyndryl News Roundup

Here are the key news stories impacting Kyndryl this week:

• Positive Sentiment: Fiscal Q2 adjusted EPS was $0.42, above the roughly $0.38 consensus, and revenue of $3.65 billion edged past estimates. Kyndryl also reaffirmed its fiscal 2027 outlook; management cited strong signings and growth in Kyndryl Consult and hyperscaler-related revenue. Kyndryl Q2 results
• Positive Sentiment: Kyndryl announced an agentic-AI modernization solution with Amazon Web Services, aiming to help customers modernize applications and deploy AI-ready workflows at scale. The partnership could strengthen its enterprise-services offering, though the announcement did not quantify expected revenue. Kyndryl and AWS modernization solution
• Neutral Sentiment: Susquehanna raised its price target from $13 to $16 but maintained a neutral rating, suggesting limited upside at the cited share price. Susquehanna rating information
• Negative Sentiment: Revenue declined 1.9% year over year, and reported profit was lower, despite the adjusted earnings beat. That contraction may raise questions about the durability of growth. Kyndryl profit and revenue report
• Negative Sentiment: One valuation analysis argued KD could be about 30% overvalued after its earnings-driven rally, a potential headwind if investors focus on valuation rather than the beat. Kyndryl valuation analysis

Kyndryl Company Profile

Kyndryl Holdings, Inc NYSE: KD is an information technology services company that designs, builds, manages and modernizes mission-critical technology systems for businesses and public-sector organizations. Its services help customers operate and transform complex IT environments, including cloud, data centers, networks, applications and digital workplaces.

The company provides consulting and implementation services as well as ongoing managed services. Its capabilities include cloud solutions, network and edge services, cybersecurity, data and artificial intelligence, application management, enterprise computing and technology modernization.

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