The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about Kyndryl Holdings, Inc. (KD) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Kyndryl Holdings, Inc ...

New service helps organizations identify cryptographic vulnerabilities and build scalable post-quantum strategies NEW YORK, Dec. 11, 2025 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today unveiled Kyndryl's Quantum Safe Assessment service to help enterprises prepare for the emerging opportunities and security threats posed by quantum computing. The new service identifies and analyzes cryptographic risk exposure across an organization's entire IT ...

Core Viewpoint - Kyndryl Holdings, Inc is experiencing positive momentum following its transformation from IBM, with a Buy rating initiated by Guggenheim analyst Jonathan Lee, who has set a price target of $30 [1][2]. Group 1: Company Strategy and Performance - Kyndryl has implemented a "Triple A" framework focusing on Alliances, Advanced Delivery, and Accounts, which has improved contract-signing quality and operational automation [2][3]. - The company is transitioning from legacy IBM-related deals to partnerships with hyperscalers and technology vendors, enhancing its offerings in consulting, cloud-enabled managed services, cybersecurity, and data and AI solutions [3][4]. - Kyndryl aims to triple cash flow, double pretax earnings, and achieve single-digit revenue growth by 2028, with early results showing adjusted EBITDA margins increasing from 12% in 2022 to 16.7% in 2025 [4]. Group 2: Market Position and Growth Potential - Despite revenue pressures from traditional data centers, growth in cloud-based services is anticipated to offset declines, positioning Kyndryl favorably in the expanding IT infrastructure services market, projected to grow from $900 billion to $1.2 trillion by 2029 [5]. - Kyndryl's focus on contract economics has led to the exit or repricing of lower-quality engagements, thereby strengthening its portfolio and expanding margins [4][5]. Group 3: Financial Projections - Analyst Jonathan Lee projects third-quarter revenue of $3.93 billion and adjusted EPS of $0.85 for Kyndryl [6].

Core Insights - Kyndryl has launched new AI-powered services that enhance managed services delivery for IBM Z customers, combining mainframe expertise with agentic AI and hybrid IT capabilities to improve application development and operational agility [1][2][3] AI-Powered Services - The new agentic AI mainframe services are designed to help IBM z/OS customers adopt innovative technologies, facilitating faster decision-making and simplifying complex processes in application and infrastructure management [2][3] - Kyndryl's AI services integrate with the Kyndryl Bridge platform, providing intelligent automation, predictive analytics, and insights across mainframe infrastructure and applications [4][5] Collaboration and Expertise - Kyndryl collaborates with IBM to enhance AI capabilities in core business systems, enabling clients to leverage advanced AI on mainframes for improved decision-making and operational agility [5][6] - The company utilizes its intellectual property and expertise in mainframe transformation, along with technologies from cloud hyperscalers, to drive innovation for customers [6][7] Market Insights - According to Kyndryl's 2025 State of Mainframe Modernization Survey, 88% of respondents have implemented or plan to implement AI in their mainframe environments, with expected benefits including increased business agility (37%), faster operational actions (32%), and cost savings (31%) [8][9] - The survey predicts that AI will generate $12.7 billion in cost savings and $19.5 billion in increased revenues over the next three years, with key use cases in performance enhancement, fraud detection, and security [9]

Core Insights - Kyndryl Holdings Inc. is recognized as a potentially undervalued stock in the US market, particularly following its expanded collaboration with Dow [1][4] - The partnership aims to modernize Dow's infrastructure applications through AI and automation, enhancing operational agility and innovation [1][3] Group 1: Collaboration Details - The expanded agreement with Dow focuses on modernizing infrastructure applications, leveraging AI and automation [1][3] - This collaboration builds on a nearly 20-year relationship, during which Kyndryl has helped Dow improve operational efficiency globally [2][3] - Kyndryl provides a range of IT infrastructure services for Dow, including cloud, network, digital workplace, and security services [2] Group 2: Strategic Importance - The application modernization initiative is a significant step in Dow's digital transformation journey, as noted by Dow's IT Director [3] - The partnership is expected to enhance Dow's application landscape, integrating advanced technologies to drive efficiency [3]

Core Insights - The second quarter of fiscal year 2026 was anticipated to yield average financial results, with a notable market overreaction to a revenue decline [1] Financial Performance - Revenue drop in the second quarter was perceived negatively by the market, despite expectations of average performance [1]

Core Insights - Kyndryl has renewed its partnership with Vodafone Idea (Vi) for three years, focusing on transforming Vi's IT operations and enhancing cybersecurity measures [1][3] - The collaboration aims to implement a next-generation IT operations delivery model that emphasizes automation and data-driven insights, leading to improved service delivery and operational efficiency [2][4] Company Collaboration - Kyndryl will develop a cyber resilience framework for Vi, which includes security governance, zero-touch services, data protection, and incident recovery services [1][3] - The partnership will leverage Kyndryl Bridge, an AI-powered integration platform, which has already deployed over 1,000 automations at Vi, reducing delivery event noise by 15% [2][3] Strategic Objectives - The collaboration is designed to align Vi's IT strategy with its business objectives, maximizing returns on IT investments and accelerating the time-to-market for new digital services [4] - Kyndryl's expertise in managing mission-critical systems has been recognized by Vi, highlighting the importance of this partnership in driving business agility and operational efficiencies [3]

Summary of Kyndryl Holdings, Inc. Coverage Core Viewpoint - Kyndryl Holdings, Inc. (KD) has experienced a significant stock decline of 39% since June 30, 2025, primarily following the company's performance and market conditions [1]. Group 1: Stock Performance - The stock has plunged 39% since the last coverage on June 30, 2025 [1]. - The majority of losses occurred after the last analysis, indicating potential ongoing challenges for the company [1]. Group 2: Investment Strategy - The focus is on growth and momentum stocks that are reasonably priced and expected to outperform the market in the long term [1]. - The investment strategy emphasizes long-term quality stocks and the use of options for strategic positioning [1].

Industry Overview - The Chinese insurance market is projected to grow significantly, with its share of global premiums expected to rise from 11% in 2018 to 20% by 2029, surpassing the United States [1][6] - Key drivers of this growth include a strong economy, high levels of government spending, increased consumer awareness, and technological innovations [1][6] Major Companies - **Ping An Insurance (Group) of China Ltd.**: Founded in 1988, it is the largest insurance company in China with a market capitalization of approximately $118 billion as of July 2022 and net premiums written of $118.8 billion for 2020. The company employs 355,982 people and serves 227 million customers [3] - **China Life Insurance (Group) Company**: The second largest insurance company in China, with a market capitalization of about $103.9 billion and net premiums written of $111.2 billion for 2020. It operates a substantial service network and serves over 500 million customers [4][7] - **People's Insurance Company of China Group**: Established in 1949, it has net premiums written of $79.6 billion and a market cap of $226.6 billion as of July 2022. The company is involved in various insurance sectors including property and health insurance [8] - **China Pacific Insurance (Group) Company Ltd.**: An integrated insurance provider with net premiums written of $51.7 billion and a market capitalization of $233.37 billion as of July 2022. The company employs 107,000 people [9] - **New China Life Insurance**: Founded in 1996, it has a market cap of $80.8 billion and focuses primarily on life insurance while also expanding into investment and healthcare [10]

Core Insights - Kyndryl Holdings, Inc. reported mixed fiscal Q2 2026 results, with an EPS of $0.38 exceeding estimates by $0.02, but revenue of $3.72 billion falling short by $119 million [1][2] Financial Performance - The company experienced a 1.40% decrease in total revenue, attributed to longer sales cycles, despite key growth drivers such as Kyndryl Consult, which grew by 25% year-over-year, and Hyperscaler-related revenue, which doubled [2] - The book-to-bill ratio remains above 1, and management reaffirmed its fiscal 2026 outlook, anticipating revenue growth in the latter half of the year due to a stronger backlog [3] Analyst Ratings - Following the earnings release, Morgan Stanley reduced its price target from $30 to $28 while maintaining a Hold rating [4] - J.P. Morgan also lowered its price target from $45 to $40 but kept a Buy rating on the stock [4] Company Overview - Kyndryl Holdings, Inc. is based in New York City and specializes in designing, building, and managing critical technology systems for enterprises globally, with a focus on integrating AI-native automation into its IT modernization services [5]