Analysts Initiate Coverage of Unisys with Buy Rating and Price Target

Analysts at Needham & Company LLC have begun coverage of Unisys Corporation (NYSE: UIS), issuing a buy rating and setting a price target of $6.00 for the information technology services provider’s stock. This news comes as part of a broader reassessment of Unisys by various analysts, with the firm releasing its report on Wednesday, October 4, 2023.

In addition to Needham’s assessment, other analysts have also recently upgraded their ratings on Unisys. Wall Street Zen raised the company’s rating from “hold” to “buy” on August 30, 2023, while Maxim Group made a similar move on August 4, 2023, elevating its rating to “buy” and placing a price target of $9.00 on the stock. Currently, two analysts rate Unisys as a buy, while one holds a neutral stance, resulting in a consensus rating of “Moderate Buy” and an average price target of $7.17, according to data from MarketBeat.

Recent Financial Performance

Unisys reported its quarterly earnings on July 30, 2023, revealing earnings per share (EPS) of $0.19. This figure surpassed analysts’ expectations, which had projected a loss of ($0.34), marking a significant positive deviation of $0.53. The company generated revenue of $483.30 million during the quarter, exceeding the consensus estimate of $444.65 million. This performance is a notable improvement from the same period last year when it reported an EPS of $0.16.

Despite these positive indicators, Unisys continues to grapple with challenges reflected in a negative return on equity of 12.55% and a net margin of 4.16%. The company has provided guidance for fiscal year 2025, projecting an EPS of $0.61 for the current fiscal year, which analysts are closely monitoring.

Institutional Investor Activity

Recent activity among institutional investors indicates a growing interest in Unisys. Virtus Fund Advisers LLC initiated a new stake in the company during the fourth quarter, valued at approximately $35,000. Meanwhile, AlphaQuest LLC expanded its holdings by 56.9% in the first quarter, now owning 9,716 shares worth approximately $45,000 after purchasing an additional 3,523 shares.

Other notable acquisitions include Byrne Asset Management LLC, which acquired new shares valued at $46,000 in the second quarter, and Pallas Capital Advisors LLC, which also established a new stake worth $49,000 in the first quarter. Notably, Los Angeles Capital Management LLC also entered with a new stake valued at $53,000 in the second quarter. Overall, institutional investors and hedge funds now hold approximately 86.87% of Unisys’s stock, reflecting strong confidence in the company’s future potential.

As Unisys continues to navigate the information technology landscape, analysts and investors alike will be watching closely for further developments and performance updates. The company’s ability to meet its earnings guidance could play a pivotal role in shaping market perceptions and investor sentiment moving forward.