Stock Price & Analysis

Analysis and Insights

Based on the provided data, here's a concise analysis of Kyndryl Holdings Inc. (KD):

Recent Financial Performance:

• Q3 Fiscal 2025 Results: Kyndryl reported revenue of $3.74 billion, slightly below analyst expectations, but achieved a non-GAAP net income of $124 million, marking a significant turnaround from the prior year's loss.
• Raised Guidance: The company increased its fiscal 2025 guidance, anticipating at least $475 million in pre-tax income and $350 million in adjusted cash flow, driven by strong signings and growth in its Kyndryl Consult unit.

Stock Performance:

• The stock price surged 10% following the positive quarterly results, reflecting investor optimism.
• Current price: $33.85 (as of 2025-03-11).

Analyst Sentiment:

• Analysts have raised their earnings forecasts, with a consensus price target of $44.60, signaling confidence in the company's earnings growth.
• Recent analyst ratings maintain a "Buy" outlook, with price targets ranging from $43 to $46.

Technical Analysis:

• The stock is currently oversold based on RSI levels (14.05, 27.26, 30.17), indicating potential for a short-term rebound.
• Fibonacci resistance levels at 38.58 and 39.95 could act as key hurdles if the stock attempts to rally.

Conclusion:

Given the positive earnings surprise, improved guidance, and analyst optimism, buy KD stock for its long-term growth potential. However, be cautious of short-term volatility and consider waiting for a technical confirmation of a trend reversal.

The price prediction for KD stock in 2025 is expected to range between $38 and $42. This forecast is supported by strong quarterly earnings, improved cash flow guidance, and positive analyst sentiment, with price targets recently raised by firms like Scotiabank and Oppenheimer. The stock's technical indicators, such as oversold RSI and Fibonacci resistance levels, also suggest potential upside.

The S1 support level for KD Stock is $33.5 ,The R1 resistant level for KD Stock is $37.84.

As of the end of day on 2025-03-17, the price of KD Stock was $35.05.

The target price for KD Stock according to analyst rating is 41.33, with the highest price target at 46.00 and the lowest at 35.00. Analysts have a Strong Buy rating on KD Stock overall.

The market cap of KD is $8.2B.

Analysis and Insights

To determine whether Kyndryl Holdings (KD) is overvalued, we analyze both technical and fundamental factors.

Technical Analysis:

Kyndryl's stock is currently trading at $33.85, below its Fibonacci pivot of $36.35, suggesting potential resistance at higher levels. The Relative Strength Index (RSI) values of 14.05, 27.26, and 30.17 indicate the stock is in oversold territory, which may signal undervaluation from a technical perspective.

Valuation Analysis:

From a fundamental perspective, Kyndryl's valuation metrics are mixed. The company has a high P/E ratio of 60.35 and EV/EBITDA of 10.1, which are above industry averages, suggesting potential overvaluation. However, the price-to-sales (P/S) ratio of 0.54 is relatively low, indicating undervaluation compared to its revenue.

Financial Performance:

Kyndryl reported Q3 2025 revenue of $3.74 billion, slightly below analyst expectations, but achieved a non-GAAP net income of $124 million, marking a turnaround from the prior year's loss. The company raised its fiscal 2025 guidance, anticipating at least $475 million in pre-tax income and $350 million in adjusted cash flow, driven by growth in its Kyndryl Consult unit.

Analyst Sentiment:

Analysts have raised their price targets for Kyndryl following improved earnings forecasts, with a new average target of $44.60. However, they expect the company to underperform compared to industry growth rates, highlighting cautious optimism.

Conclusion:

While Kyndryl's improved earnings and guidance are positive, its high P/E and EV/EBITDA ratios suggest overvaluation. The stock's technical indicators and mixed analyst sentiment further support this view. Investors should consider waiting for a price correction or stronger revenue growth before entering.

Kyndryl Holdings, Inc. is a technology services company. The Company is an infrastructure services provider in the world, serving as a partner to enterprise customers. The Company operates through four segments: United States, Japan, Principal Markets, and Strategic Markets. It provides a set of technology services around hybrid cloud solutions, business resiliency and network services for information technology (IT) transformations. Its cloud services provide a 360-degree approach to identifying and solving challenges and driving transformation forward. Its Core Enterprise and zCloud Services support a range of enterprise infrastructure, including private clouds, mainframe environments, distributed computing, enterprise networks and storage environments. Kyndryl Bridge is an open integration platform that delivers IT solutions. It offers its services to industries, such as banking and financial markets, chemical, oil and gas, communications and media, government and healthcare.

Price Prediction for KD Stock by 2030

Based on current trends and analysis, KD stock is predicted to reach $60-$65 by 2030.

Reasons for the prediction:

• Strong Earnings Report: KD reported a revenue of $3.74 billion for Q3 2025, with a non-GAAP net income of $124 million, showing a significant turnaround from previous losses.
• Positive Analyst Sentiment: Analysts have raised their price targets, with an average target of $44.60 and a range of $43 to $46 per share.
• Improved Financial Outlook: The company has raised its guidance for fiscal 2025, anticipating strong cash flow and pre-tax income growth.
• Strategic Acquisitions: The acquisition of Infinera for $2.3 billion highlights KD's expansion into high-growth areas like data centers.

KD has a total of 90000 employees.