JPMorgan says Kyndryl short report ‘doesn’t dent’ Overweight thesis

JPMorgan says Kyndryl Holdings (KD) traded below $33 per share yesterday for the first time since its November 2024 investor day on a short report “that doesn’t dent” the firm’s Overweight thesis. The short report’s main new claim that $1B-$2B incremental cost of sales are incoming from IBM over the next few years “seems overstated” based on JPMorgan’s analysis and the remaining claims “don’t overly concern us,” the analyst tells investors in a research note. The firm believes Kyndryl has strong visibility into near-term revenue dynamics. It keeps an Overweight rating on the shares with a $45 price target