Crispr Therapeutics shares tumble after significant earnings miss
Investing.com - Oppenheimer raised its price target on Kyndryl Holdings Inc (NYSE:KD) to $55.00 from $47.00 on Monday, while maintaining an Outperform rating on the stock. The IT services company, currently trading at $42.63 and near its 52-week high of $43.74, has demonstrated remarkable momentum with a 67.48% return over the past year.
The research firm cited a clearer path to earnings per share of approximately $5, noting that Kyndryl continues to win new business at a healthy pace with a book-to-bill ratio of 1.2x, while low or no-margin business continues to reprice.
Oppenheimer expects Kyndryl’s Cloud and Consult segments to drive mid-single-digit percentage topline growth by fiscal year 2028, with pre-tax income margins reaching 8.4% in FY28, compared to 4.7% in FY26.
The firm projects cumulative free cash flow of approximately $2.5 billion from FY26 to FY28, which should fund over $1 billion in share buybacks and reduce the share count by more than 10%.
The new $55 price target represents 11 times Oppenheimer’s FY28 EPS estimate of approximately $5, reflecting increased confidence in Kyndryl’s growth trajectory.
In other recent news, Kyndryl reported its first-quarter earnings for 2025, showing a mixed performance with a revenue of $3.8 billion, surpassing expectations of $3.77 billion, but an earnings per share (EPS) of $0.52, falling short of the $0.57 forecast. The company continues to focus on expanding its capabilities in cloud migration, cybersecurity, and AI implementation, leveraging its leadership in mission-critical technology services. Kyndryl also announced a strategic partnership with Databricks to enhance AI adoption, combining its expertise in data and AI services with Databricks’ Data Intelligence Platform. Additionally, Kyndryl is collaborating with the Virginia Department of Motor Vehicles to modernize its IT systems, replacing the existing mainframe with a cloud-native architecture. In another development, Kyndryl expanded its cloud services through an alliance with Microsoft (NASDAQ:MSFT), aiming to improve operational efficiency for businesses with Microsoft’s Azure technologies. The company also revealed leadership changes, appointing new leaders in key roles to drive its strategic initiatives and technological modernization. These recent developments reflect Kyndryl’s ongoing efforts to support critical enterprise technology services and enhance customer value.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.