William Blair Starts Coverage on Unisys (UIS) with Outperform Call

William Blair has initiated coverage of Unisys (UIS) with an Outperform rating, citing a compelling risk-reward profile and upward revisions to EBITDA estimates. The research firm highlighted operational improvements and a clearer strategic focus that, in its view, justify a more constructive stance on the legacy IT services specialist.

According to William Blair, management’s recent cost controls, contract re-pricing and selective client wins are beginning to translate into improved margins. The firm raised its near-term EBITDA projections to reflect these trends, noting that free cash flow should benefit from both margin expansion and disciplined capital allocation. While the market has often discounted Unisys because of its legacy business mix, the analyst team believes the company’s transformation initiatives are gaining traction.

William Blair’s initiation frames the stock as an attractive risk-reward proposition. The research note points to a combination of near-term operational leverage and a valuation that still reflects skepticism, creating upside potential if execution continues. The firm also acknowledged lingering execution risks—such as contract renewals and competitive pressure in the IT services market—but concluded that the potential returns outweigh these concerns for investors with a medium-term horizon.

Pricing and target guidance were included in the report, with William Blair using adjusted EBITDA as a key valuation metric. The firm’s revised estimates include modest revenue stabilization and accelerating margin recovery over the next several quarters. Analysts emphasized monitoring key indicators: backlog health, contract renewals, and the pace of gross margin improvement.

Investors should weigh the initiation within the broader industry context. Unisys operates amid demand for legacy modernization and cloud services, a competitive but large market where disciplined execution can produce outsized shareholder returns. William Blair’s call may prompt renewed investor attention, particularly among value-oriented and event-driven managers looking for companies where operational change intersects with an undervalued balance sheet.

As always, prospective investors should consider Unisys’ execution risk and the general IT services cycle when assessing exposure. William Blair’s Outperform reflects optimism that the company’s ongoing turnaround can deliver measurable cash flow and earnings gains over the next 12–24 months.