Kyndryl (KD): A Fresh Look at Valuation Following Advanced Agentic AI Expansion

Kyndryl Holdings (NYSE:KD) just unveiled expanded agentic AI capabilities, signaling its intent to help organizations move from small pilot AI projects to scalable and enterprise-ready AI solutions that bring real business value.

See our latest analysis for Kyndryl Holdings.

Momentum around Kyndryl has been building following its recent innovations in agentic AI, reinforced by strategic partnerships and fresh visibility at industry conferences. The stock’s latest moves suggest that optimism is creeping back in, with a modest 1-year total shareholder return of 0.28% reflecting early signs of a long-term turnaround. However, short-term share price returns remain muted. As investors weigh its progress in scaling enterprise AI, Kyndryl’s discounted share price compared to industry averages adds further intrigue to the outlook.

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With shares still trading well below most analyst targets, is Kyndryl an underappreciated AI transformation play? Or has the market already factored in its future potential and growth prospects?

Most Popular Narrative: 29.7% Undervalued

Kyndryl’s narrative fair value stands well above its last close, suggesting the company trades at a substantial discount in the eyes of consensus. This sets the stage for a closer look at what’s driving this positive outlook among market watchers.

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 what most investors are missing? The narrative’s bold valuation is based on an ambitious mix of financial transformation and margin expansion, all hinging on a series of underlying forecasts. Want to know which future milestones tilt this story so far above current prices? The full narrative breaks down the levers that could flip the market’s script.

Result: Fair Value of $43 (UNDERVALUED)

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

However, persistent reliance on legacy contracts and unpredictable timings in large account transitions could quickly undermine confidence in Kyndryl’s bullish outlook.

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

Build Your Own Kyndryl Holdings Narrative

If you see the numbers differently, or want to dive deeper into what matters most to you, you can craft your personal view in just a few minutes: Do it your way.

A great starting point for your Kyndryl Holdings research is our analysis highlighting 3 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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