Jeffrey Silber, an analyst from BMO Capital, maintained the Hold rating on Gartner (IT – Research Report). The associated price target is $411.00.
Jeffrey Silber’s Hold rating on Gartner’s stock (IT) has been influenced by multiple elements. Gartner had a strong quarter, surpassing expectations mainly due to margin-driven factors. The Research NCVI and new business significantly outperformed as newly appointed sellers increased productivity. The 3Q23 adjusted EBITDA exceeded anticipations, owing to the strength of consulting and effective cost management. Furthermore, Gartner’s full-year guidance was raised by the management, which led Silber to increase his estimates and target price.
However, despite the strong quarter, Silber is waiting for a stock pullback. Gartner reported an adjusted EPS of $2.56 for 3Q23, which is substantially higher than the consensus of $1.96 and Silber’s estimate of $2.06. This large beat was primarily driven by margins. Adjusted EBITDA margin was 23.7%, considerably higher than the consensus estimate of 20.6%. Moreover, the management has raised the 2023E margin expectations to 24.4%. Although the company has shown solid growth and strong cash flow, valuation issues have prevented Silber from taking a more aggressive stance.
Silber covers the Financial sector, focusing on stocks such as S&P Global, Moody’s, and Factset Research. According to TipRanks, Silber has an average return of 12.8% and a 65.05% success rate on recommended stocks.
In another report released on November 3, Barclays also assigned a Hold rating to the stock with a $400.00 price target.
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Gartner (IT) Company Description:
Gartner, Inc. is a research and advisory company, which delivers technology-related insights to its clients to make right decisions. It operates through the following segments: Research, Consulting and Conferences. The Research segment gives advices on the mission-critical priorities of leaders. The Consulting segment offers customized solutions to unique client needs through on-site, day-to-day support, and proprietary tools for measuring and improving IT performance. The Conferences segment involves in the business professionals across the organization. The company was founded by Gideon I. Gartner and Dave L. R. Stein in 1979 and is headquartered in Stamford, CT.
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