Kyndryl Holdings initiated with a Neutral at Susquehanna

Susquehanna analyst James Friedman initiated coverage of Kyndryl Holdings with a Neutral rating and $14 price target. The spinoff from IBM is "off to a good start" with existing clients that include 75% of the Fortune 100 and a "newfound freedom" to address a significantly larger total addressable market, Friedman tells investors in a research note. At the same time, declining revenues due to customer losses and an accelerating trend of cloud migration from the mainframe pose "significant obstacles" for Kyndryl, says the analyst.