10 Best Spin Off Stocks to Buy According to Hedge Funds

7. Kyndryl Holdings, Inc. (NYSE:KD)

Number of Hedge Fund Holders: 33

Kyndryl Holdings, Inc. (NYSE:KD) offers IT infrastructure services, including core enterprise and zCloud services, digital workplace services, network and edge services, cloud services, and others. In 2021, the firm broke off from IBM’s infrastructure services business.

Scotiabank analyst Divya Goyal raised the price objective for Kyndryl Holdings, Inc. (NYSE:KD) shares from $35 to $45, while keeping a Sector Outperform rating. This revision follows Kyndryl’s report of another strong quarter, which exceeded market expectations, notably in terms of earnings. The company’s excellent implementation of its strategic strategy was identified as a significant driver of its success. Over the previous 12 months, the firm made $15.11 billion in revenue, with a gross profit margin of 20.24%. Kyndryl Consult, a notable growth driver, posted a 26% year-over-year revenue gain in the third quarter. The firm also made $300 million in sales from cloud hyperscaler relationships. Looking ahead, Kyndryl Holdings, Inc. (NYSE:KD) estimates a 2% constant-currency sales increase in the fourth quarter.