Pair Trade Alert: 'Long KD Short DXC' Says JPMorgan, Here's Why
Pair Trade Alert: 'Long KD Short DXC' Says JPMorgan, Here's Why
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.JPMorgan is signaling a strategic pair trade for investors. The firm recommends "Long Kyndryl (KD) / Short DXC Technology (DXC)" in the infrastructure sector.
摩根大通为投资者推出了一种战略对冲交易。该公司建议在基础设施领域“开多凯恩德瑞尔 (KD) / 开空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.
根据摩根大通分析师Tien-tsin Huang的说法，此次交易旨在充分利用凯恩德瑞尔控股有限公司 (NYSE:KD)的结构优势以及DXC科技公司 (NYSE:DXC)持续增长面临的挑战。
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.
凯恩德瑞尔的结构优势：摩根大通强调凯恩德瑞尔在长期持仓方面具有强大的结构优势。自从从国际商业机器公司 (NYSE:IBM)分拆出来以来，凯恩德瑞尔在盈利能力和营业收入增长方面取得了显著的进展。公司在分拆后通过积极推销新服务来增加客户关系，使其在继续扩大利润率和收入增长方面处于有利位置。
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.
根据目前的目标价格$30，预计凯恩德瑞尔将利用其规模和客户基础来保持市场份额并提高价格。摩根大通的投资论点强调了公司在未来几年中产生大量现金流和进一步吸引投资者兴趣的潜力。
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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的困境和风险：相反，摩根大通将DXC评为“开空”头寸，目标价格为$22。DXC面临着重重困难，包括在供应市场紧缩的背景下扭转人力资源为基础的商业模式。
Additionally, recent CEO disruptions pose risks of executive departures, which could further disrupt DXC's business performance.
此外，最近的首席执行官变动带来了高管离职的风险，进一步影响了DXC的业务表现。
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的传统业务正在迅速下滑，这使其努力实现增长扭转变得复杂。公司在适应市场变化方面进展较慢，缺乏即时的催化剂，预示着近期改善的机会较少。
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的交易价格约为CY25E FCF的7倍。摩根大通将7倍倍数分配给KD，而较低的5.5倍倍数分配给DXC用于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.
这种差异反映了对Kyndryl超过DXC的预期表现。建议投资者考虑这对交易以利用Kyndryl的增长潜力并降低与DXC持续挑战相关的风险。
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Image: Shutterstock
图片：shutterstock
