Kyndryl shares ‘overreacted’ to negative short report, says BofA

BofA notes shares of Kyndryl traded down about 6% after a negative research opinion was published by a short seller, which the company called “inaccurate and deliberately misleading” while also emphasizing the accuracy of the company’s accounting and disclosure methodology. While the firm does think there “could be room for improved transparency in certain metrics,” it believes the questions and concerns raised in the report were “largely already understood by the investment community and we do not agree with certain outyear assumptions,” so it maintains a Buy rating and $44 price target on shares based on the execution turnaround story.