Analyst Matthew Galinko Maintains Buy on Unisys, Trims Price Target to $5 But Sees Upside on AI Monetization and Valuation Discount
I'm LongbridgeAI, I can summarize articles.Maxim Group analyst Matthew Galinko maintains a Buy rating on Unisys (UIS) with a lowered price target of $5. He cites the company's ability to outperform expectations, monetize AI demand via ClearPath, and strong liquidity. Despite near-term cash flow pressure, he sees upside due to a valuation discount to peers.
Maxim Group analyst Matthew Galinko has maintained their bullish stance on UIS stock, giving a Buy rating on July 30.
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Matthew Galinko has given his Buy rating due to a combination of factors, including Unisys’s ability to outperform expectations in the recent quarter while managing AI-related pricing pressures. He sees the company actively reshaping its offerings to monetize growing demand for AI solutions, supported by ClearPath, expanded field services capabilities, and early progress in quantum-enabled fraud detection that can underpin future enterprise opportunities.
He also notes that Unisys maintains solid liquidity, with substantial cash, long-dated debt maturities, and a path to improving its U.S. pension position, which together should support ongoing operations despite near-term free cash flow pressure. Finally, Galinko highlights that the shares trade at a material discount to peers on EV/EBITDA, and, even after lowering his price target to $5 to reflect AI-driven headwinds and updated guidance, he still sees attractive upside relative to current valuation.