Jefferies has initiated coverage on U.S. IT services companies, giving Grid Dynamics Holdings a Buy rating with an $11 price target. The firm said investor worries that artificial intelligence could hurt Grid’s business are overblown.
“Concerns of AI disruption have pushed valuation to historically attractive levels,” Jefferies wrote. Analysts expect Grid’s revenue growth to rise from high single digits this year to low double digits in 2026, with margins remaining stable or improving.
Jefferies added that AI is still immature, with many projects failing at the proof-of-concept stage, meaning companies will continue relying on IT services expertise. Grid already earns 23% of its revenue from data and AI-related work, growing at over 20% annually.
By contrast, Jefferies started coverage of Unisys Corp at Hold with a $4 price target. While early signs of a turnaround are encouraging, execution risks remain high.
“After multiple iterations of trying to execute a turnaround, there are signs the current strategy may be the right one,” the analysts said. Revenues have held steady near $2 billion since 2022, but bookings and new customer wins are increasing, which could support growth from 2026.
Unisys has also reduced pension liabilities and recently issued $700 million in new notes to restructure debt and fund the pension. Jefferies said more consistent progress is needed before assigning the stock a higher valuation.
