Pair Trade Alert: 'Long KD Short DXC' Says JPMorgan, Here's Why
Pair Trade Alert: 'Long KD Short DXC' Says JPMorgan, Here's Why
JPMorgan is signaling a strategic pair trade for investors. The firm recommends "Long Kyndryl (KD) / Short DXC Technology (DXC)" in the infrastructure sector.
摩根大通爲投資者推出了一種戰略對沖交易。該公司建議在基礎設施領域「開多凱恩德瑞爾 (KD) / 開空DXC科技 (DXC)」。
According to JPMorgan analyst Tien-tsin Huang, this trade is set to capitalize on Kyndryl Holdings Inc's (NYSE:KD) structural advantages and DXC Technology Co's (NYSE:DXC) ongoing growth challenges.
根據摩根大通分析師Tien-tsin Huang的說法，此次交易旨在充分利用凱恩德瑞爾控股有限公司 (NYSE:KD)的結構優勢以及DXC科技公司 (NYSE:DXC)持續增長面臨的挑戰。
Kyndryl's Structural Advantages: JPMorgan highlights Kyndryl as a compelling long position due to its significant structural advantages. Kyndryl has shown impressive progress in profitability and revenue growth since its spin-off from International Business Machines Corp (NYSE:IBM). The company's strong client relationships and ability to up-sell new services post-spin position it well for continued margin expansion and revenue growth.
凱恩德瑞爾的結構優勢：摩根大通強調凱恩德瑞爾在長期持倉方面具有強大的結構優勢。自從從國際商業機器公司 (NYSE:IBM)分拆出來以來，凱恩德瑞爾在盈利能力和營業收入增長方面取得了顯著的進展。公司在分拆後通過積極推銷新服務來增加客戶關係，使其在繼續擴大利潤率和收入增長方面處於有利位置。
With a current price target of $30, Kyndryl is expected to leverage its scale and client base to maintain market share while increasing prices. JPMorgan's investment thesis underscores the company's potential to generate significant cash flow and drive further investor interest over the next few years.
根據目前的目標價格$30，預計凱恩德瑞爾將利用其規模和客戶基礎來保持市場份額並提高價格。摩根大通的投資論點強調了公司在未來幾年中產生大量現金流和進一步吸引投資者興趣的潛力。
Read Also: Roaring Kitty Posts Again: What's Going On With GameStop, AMC, Chewy Stocks?
閱讀詳情：Roaring Kitty再次發帖：GameStop、AMC、Chewy股票發生了什麼？
DXC's Struggles, Risks: Conversely, JPMorgan rates DXC as a "Short" position, with a price target of $22. DXC is facing substantial hurdles, including turnaround plans in its people-based business model amid a tightening supply market.
DXC的困境和風險：相反，摩根大通將DXC評爲「開空」頭寸，目標價格爲$22。DXC面臨着重重困難，包括在供應市場緊縮的背景下扭轉人力資源爲基礎的商業模式。
Additionally, recent CEO disruptions pose risks of executive departures, which could further disrupt DXC's business performance.
此外，最近的首席執行官變動帶來了高管離職的風險，進一步影響了DXC的業務表現。
DXC's legacy business is rapidly declining, complicating its efforts to achieve a positive growth turnaround. The company's slower pace in adapting to market changes and lack of immediate catalysts suggest fewer opportunities for near-term improvement.
DXC的傳統業務正在迅速下滑，這使其努力實現增長扭轉變得複雜。公司在適應市場變化方面進展較慢，缺乏即時的催化劑，預示着近期改善的機會較少。
The Trade Strategy: Both Kyndryl and DXC are currently trading at approximately 7x CY25E FCF. JPMorgan assigns a 7x multiple to KD and a lower 5.5x multiple to DXC for CY26E FCF.
交易策略：目前Kyndryl和DXC的交易價格約爲CY25E FCF的7倍。摩根大通將7倍倍數分配給KD，而較低的5.5倍倍數分配給DXC用於CY26E FCF。
This differential reflects the expected outperformance of Kyndryl over DXC. Investors are advised to consider this pair trade to capitalize on Kyndryl's growth potential and mitigate risks associated with DXC's ongoing challenges.
這種差異反映了對Kyndryl超過DXC的預期表現。建議投資者考慮這對交易以利用Kyndryl的增長潛力並降低與DXC持續挑戰相關的風險。
- Jim Cramer Says This Retailer Yields 3%: 'Which Is Quite Good'
- 吉姆·克雷默表示，這家零售商的收益率爲3％：「相當不錯」
Image: Shutterstock
圖片：shutterstock