Street Calls of the Week: Time to shop Home Depot
Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week: upgrades for Kyndryl, Godaddy, Home Depot, and Ciena; downgrades for Yum! Brands.
InvestingPro subscribers always get first dibs on market-moving rating changes.
What happened? On Monday, Evercore upgraded Kyndryl Holdings Inc (NYSE:KD) to Outperform with a $26 price target
What’s the full story? Evercore upgraded Kyndryl to Outperform and raised its price target to $26, citing the company’s strong performance on the 3As initiatives (known as alliances, advanced deliveries, and accounts) and its improved revenue outlook for 2025 and 2026. The analysts also increased their adjusted EBITDA estimates for Kyndryl above consensus, reflecting the company’s higher earnings quality and growth potential.
Evercore wrote that the company has achieved higher margins and customer retention through its Accounts, Alliances & Advanced Delivery strategies. Evercore expects Kyndryl to grow its adjusted EBITDA from $2.352B in 2024 to $2.745B in 2026, and raised its valuation multiple from 2.5 to 3.0.
Outperform at Evercore means “the total forecasted return is expected to be greater than the expected total return of the analyst's coverage sector”
How did the stock react? KD shares rose from $19.60 to $19.97, a gain of $1.94% in the premarket. Kyndryl opened the regular session at $20.23 and closed at $20.80, a gain of 6.18% since Friday day’s close.
What happened? On Tuesday, Piper upgraded Godaddy Inc (NYSE:GDDY) to Overweight with a $121 price target.
What’s the full story? Piper downgraded GoDaddy last year due to its slowing growth rate. The analyst noted the company has improved its margins and domains bookings, which could lead to a faster growth
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