William Blair Initiates Unisys (UIS) with Outperform Rating Highlighting Compelling Risk-Reward and Rising EBITDA Projections

Unisys Corporation (NYSE:UIS) is 1 of the cheap penny stocks to put in. On December 10, William Blair expert Maggie Nolan initiated sum of Unisys with an Outperform rating. The steadfast views the planetary IT services supplier arsenic an charismatic risk-reward opportunity. Nolan provided an optimistic fiscal forecast, estimating that Unisys volition make $253 cardinal successful EBITDA for 2025 and turn to $271 cardinal successful 2026.

The initiation study highlights a strategical pivot arsenic Unisys reinvents itself arsenic a next-generation IT solutions provider. By shifting toward higher-value solutions and expanding into the midmarket, the institution aims to amended gross prime and borderline expansion. Nolan noted that portion the modulation is ongoing, the company’s bequest successful mission-critical infrastructure, combined with caller capabilities successful AI and precocious unreality services, positions it to seizure marketplace share.

In Q3 2025, Unisys reported a important nett nonaccomplishment of $309 million, which included a $228 cardinal one-time, non-cash pension expense. Quarterly gross besides saw a decline, falling 7.4% year-over-year, attributed to airy licence and enactment renewals and a broader marketplace intermission successful IT task spending. Despite the gross shortfall, absorption remained assured successful its profitability targets.

Unisys is presently connected way to conscionable oregon transcend the midpoint of its improved non-GAAP operating nett borderline guidance of 8% to 9%. This resilience is fueled by a 15% year-over-year summation successful TCV and beardown show successful the License and Support/LNS business. LNS gross expectations for the twelvemonth person been raised to $430 million, which is $40 cardinal supra archetypal projections.

Unisys Corporation (NYSE:UIS), unneurotic with its subsidiaries, operates arsenic an IT solutions institution successful the US, the UK, and internationally. It operates successful 3 segments: Digital Workplace Solutions/DWS, Cloud, Applications & Infrastructure Solutions/CA&I, and Enterprise Computing Solutions/ECS.

While we admit the imaginable of UIS arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.