Bank of America Securities analyst Tyler DuPont CFA maintained a Buy rating on Kyndryl Holdings Incorporation (KD – Research Report) yesterday and set a price target of $44.00.
Tyler DuPont CFA has given his Buy rating due to a combination of factors that suggest the market’s reaction to negative research on Kyndryl Holdings may have been exaggerated. Despite the stock’s decline following the report, DuPont believes the concerns raised were already known to investors and do not warrant a change in outlook. The company’s response to the report emphasized the accuracy of its accounting practices and transparency, which DuPont finds credible.
Moreover, DuPont highlights that the alleged issues with IBM-related costs are not expected to significantly impact Kyndryl, as the company has mechanisms in place to manage potential cost increases. Additionally, while there are concerns about declining revenue despite increased signings, DuPont views signings as a forward-looking metric that will eventually translate into revenue growth. Lastly, audit concerns mentioned in the report are seen as related to IT controls rather than revenue misstatements, further supporting the Buy recommendation.
According to TipRanks, DuPont CFA is ranked #6558 out of 9406 analysts.