11:17 AM EDT, 07/08/2025 (MT Newswires) -- Kyndryl's ( KD ) path to an EPS of about $5 has become clearer as the company continues to win new business at a healthy book-to-bill ratio and reprices low or no-margin business, Oppenheimer said in a Tuesday note.

The company's cloud and consulting services should push topline growth into mid-single-digit percentages by 2028, with estimated pretax income margins of 8.4% in 2028, according to the note.

Oppenheimer analysts also said that Kyndryl's ( KD ) expected cumulative free cash flow of about $2.5 billion between fiscal 2026 and 2028 should fund buybacks of $1 billion and shrink the company's share count by more than 10%.

Oppenheimer maintained its outperform rating on Kyndryl ( KD ) but raised its price target to $55 from $47.

Price: 43.50, Change: +0.87, Percent Change: +2.05