By Anusuya Lahiri
Publication Date: 2025-11-28 18:09:00
Kyndryl Holdings, Inc (NYSE:KD) is gaining momentum in its post-International Business Machines Corp (NYSE:IBM) transformation.
The KD Analyst: On Wednesday, Guggenheim analyst Jonathan Lee initiated coverage on Kyndryl with a Buy rating. His price forecast is currently $30.
Lee argues that Kyndryl has executed a disciplined and effective turnaround strategy since its 2021 spin-off from IBM.
Also Read: Kyndryl Cloud Soars In Q2, Expands Global AI Footprint, Raises Buyback By $400 Million
The Analyst Thesis: Management’s “Triple A” framework focused on Alliances, Advanced Delivery, and Accounts. It improved contract-signing quality, automating operations, and enforcing tighter contract discipline, Lee says.
Despite operating in a slow-growth segment of the IT services market, Kyndryl has a profitable and sustainable free cash flow.
Lee noted that Kyndryl has worked to replace legacy IBM-related deal flow by expanding partnerships with hyperscalers and technology vendors.
Those alliances…
