Kyndryl Holdings (NYSE:KD): Evaluating Valuation After Launch of New Quantum Safe Cybersecurity Service

Kyndryl Holdings (NYSE:KD) just rolled out its Quantum Safe Assessment service, a new cybersecurity offering that helps large enterprises map their cryptographic weak spots and plan a gradual shift toward quantum resistant security standards.

See our latest analysis for Kyndryl Holdings.

The launch of Quantum Safe Assessment lands at an interesting moment for Kyndryl, with the share price at $27.47 and a recent 1 month share price return of 5.41% following a much weaker year to date. At the same time, the 3 year total shareholder return of 147.25% still signals that long term momentum has been constructive despite near term volatility.

If this kind of quantum safe story has your attention, it could be a good time to scan other infrastructure and cybersecurity names through high growth tech and AI stocks to see what else the market might be mispricing.

With the shares still trading at a hefty discount to analyst estimates despite improving revenue and net income trends, the real question is whether Kyndryl is a value play hiding in plain sight or if the market already sees the growth ahead.

Most Popular Narrative: 26.9% Undervalued

With Kyndryl shares last closing at $27.47 versus a narrative fair value of $37.60, the storyline leans toward meaningful upside from here.

The company's focus on expanding AI, data, and cybersecurity services supported by investments in proprietary initiatives like Kyndryl Bridge and new alliances such as Databricks is allowing Kyndryl to address rising complexity and security requirements, supporting both higher margins and new revenue streams.

Read the complete narrative.

Curious how modest revenue growth, fatter margins and a lower future earnings multiple still add up to upside from here? The full narrative unpacks the math.

Result: Fair Value of $37.60 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Kyndryl still faces execution risk around complex legacy contract transitions and potential revenue lumpiness if consulting or hyperscaler momentum slows.

Find out about the key risks to this Kyndryl Holdings narrative.

Build Your Own Kyndryl Holdings Narrative

If you see Kyndryl's story differently or want to dig into the numbers yourself, you can build a fresh view in minutes: Do it your way.

A great starting point for your Kyndryl Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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