Morgan Stanley Initiates Coverage on Kyndryl (NYSE:KD)

Key Points

• Morgan Stanley has initiated coverage on Kyndryl (NYSE:KD) with an "equal weight" rating and set a price target of $30.00, indicating a potential downside of 2.15% from its current price.
• Other analysts have varying ratings, with Oppenheimer increasing their price target from $47.00 to $55.00 and three analysts overall giving the stock a "buy" rating.
• Kyndryl reported a quarterly earnings per share of $0.37, slightly exceeding estimates, with a revenue of $3.74 billion, which was below consensus expectations.

Analysts at Morgan Stanley assumed coverage on shares of Kyndryl (NYSE:KD - Get Free Report) in a report issued on Friday, MarketBeat Ratings reports. The brokerage set an "equal weight" rating and a $30.00 price target on the stock. Morgan Stanley's price target indicates a potential downside of 2.15% from the stock's current price.

Other research analysts have also recently issued research reports about the company. Wall Street Zen cut shares of Kyndryl from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 12th. Oppenheimer boosted their target price on shares of Kyndryl from $47.00 to $55.00 and gave the stock an "outperform" rating in a report on Tuesday, July 8th. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $42.00.

Kyndryl Stock Down 2.8%

Shares of KD opened at $30.66 on Friday. The firm has a market cap of $7.09 billion, a P/E ratio of 25.34, a price-to-earnings-growth ratio of 3.47 and a beta of 1.89. The company has a debt-to-equity ratio of 2.24, a quick ratio of 1.05 and a current ratio of 1.05. Kyndryl has a 52 week low of $22.26 and a 52 week high of $44.20. The firm's 50-day simple moving average is $32.93 and its 200 day simple moving average is $35.21.

Kyndryl (NYSE:KD - Get Free Report) last issued its quarterly earnings results on Monday, August 4th. The company reported $0.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.36 by $0.01. The business had revenue of $3.74 billion for the quarter, compared to the consensus estimate of $3.83 billion. Kyndryl had a return on equity of 19.88% and a net margin of 1.97%.The firm's quarterly revenue was up .1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.13 earnings per share. Kyndryl has set its FY 2026 guidance at EPS. On average, analysts forecast that Kyndryl will post 0.73 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Osaic Holdings Inc. boosted its stake in Kyndryl by 9.9% in the second quarter. Osaic Holdings Inc. now owns 35,938 shares of the company's stock valued at $1,503,000 after acquiring an additional 3,242 shares in the last quarter. Orion Porfolio Solutions LLC acquired a new stake in shares of Kyndryl during the second quarter worth about $530,000. Thrivent Financial for Lutherans lifted its holdings in shares of Kyndryl by 58.7% during the second quarter. Thrivent Financial for Lutherans now owns 521,098 shares of the company's stock worth $21,865,000 after purchasing an additional 192,675 shares during the period. State of Wyoming acquired a new stake in shares of Kyndryl in the 2nd quarter worth $568,000. Finally, Geneos Wealth Management Inc. lifted its position in Kyndryl by 62.2% in the second quarter. Geneos Wealth Management Inc. now owns 1,487 shares of the company's stock valued at $62,000 after purchasing an additional 570 shares during the period. 71.53% of the stock is owned by institutional investors and hedge funds.

Kyndryl Company Profile

Kyndryl Holdings, Inc operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services.

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