TD Cowen analyst Bryan Bergin maintained a Buy rating on Globant SA (GLOB – Research Report) today and set a price target of $125.00.
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Bryan Bergin has given his Buy rating due to a combination of factors that highlight both challenges and potential opportunities for Globant SA. Despite the recent volatility in Latin America and B2B2C sectors leading to a revenue and EPS miss, the company has taken proactive steps to stabilize its outlook by flattening its guidance for the upcoming quarters. This cautious approach aims to mitigate future risks and reflects management’s prudence in navigating uncertain macroeconomic conditions.
Globant’s management has been transparent about the current challenging environment, likening it to previous economic downturns, yet they have not observed any cancellations in existing projects. The company’s pipeline has shown a significant year-over-year increase, suggesting potential for future growth. Furthermore, Globant’s focus on differentiating its service offerings and advancing its AI practice positions it well for long-term success. While immediate catalysts may be limited, the expectation of stability and improvement in the coming quarters supports the Buy rating, as the company is poised to rebuild solid quarterly performance after this strategic reset.
According to TipRanks, Bergin is a 4-star analyst with an average return of 4.4% and a 52.20% success rate. Bergin covers the Technology sector, focusing on stocks such as Cognizant, Exlservice Holdings, and Accenture.
In another report released on May 7, Mizuho Securities also maintained a Buy rating on the stock with a $194.00 price target.