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Investing.com - Maxim Group upgraded Unisys (NYSE:UIS) from Hold to Buy and established a $9.00 price target, citing the company’s reduced risk profile following recent pension liability refinancing. The target represents significant upside from the current price of $4.16, though InvestingPro data shows the stock has declined over 42% in the past six months.
The upgrade comes after Unisys reported second-quarter 2025 results on July 30, with revenue and adjusted EBITDA exceeding expectations. With a current market capitalization of $298 million and an EV/EBITDA multiple of 4.69x, Maxim Group noted that Unisys is trading at an enterprise value to EBITDA multiple of 4.1x their 2026 forecast, representing a significant discount to the peer average of 9.6x. InvestingPro analysis reveals 8 additional key insights about the company’s valuation and financial health.
Unisys updated its 2025 guidance, now projecting constant-currency revenue growth between -1.0% and +1.0%, down from the previous +0.5% to +2.5% range. The company raised its non-GAAP operating margin guidance to 8.0%-9.0% from 6.5%-8.5%, and increased its pre-pension free cash flow guidance to $110 million from $100 million.
The company ended the second quarter with $300.8 million in cash and investments alongside $698.4 million in debt. Unisys issued $700 million in new notes to refinance approximately $500 million in outstanding debt and used the excess cash to make approximately $280 million in payments toward pension liabilities. According to InvestingPro’s comprehensive analysis, the company maintains a current ratio of 1.66, though it operates with a significant debt burden and is currently burning through cash.
Maxim Group raised its 2025 and 2026 revenue, non-GAAP operating margin, and adjusted EBITDA estimates based on Unisys’s strong second-quarter performance and updated guidance.
In other recent news, Unisys Corporation reported a significant earnings surprise for the second quarter of 2025. The company achieved earnings per share of $0.19, defying projections of a $0.29 loss per share. Additionally, Unisys’s revenue reached $483.3 million, surpassing the anticipated $444.65 million. These results have marked a positive development for the company, reflecting better-than-expected financial performance. Investors have taken note of these figures as they consider the company’s future prospects. The earnings beat and revenue growth are key highlights for Unisys, indicating a potentially strong financial position. Such developments are crucial for stakeholders looking to understand the company’s recent performance.
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