Seth Weber, an analyst from Wells Fargo, maintained the Buy rating on Gartner (IT – Research Report). The associated price target is $435.00.
Seth Weber has given his Buy rating due to a comprehensive evaluation of Gartner’s recent performance and future prospects. He notes that Gartner has not only outperformed expectations with significant revenue, EBITDA, and EPS above estimates but also raised its full-year guidance. This includes revenue growth across all segments, stability in non-subscription business, and improved net contract value increment. Furthermore, Gartner’s EBITDA margin guidance suggests robust mid-20% margins, and the company’s largest share repurchase since the second quarter of 2022, combined with a new $500 million authorization, signals a positive trend that supports the stock’s growth potential.
Additionally, Weber emphasizes the acceleration of new business in both GBS and GTS segments, with enterprise leaders’ new business growing at a mid-teens rate. This is attributed to easier year-over-year comparisons and the maturation of the sales force following a significant headcount expansion in 2022. Gartner’s GBS segment in particular demonstrated resilience, with continued strong wallet retention rates. Moreover, upward revisions in the revenue guidance for both Conferences and Consulting reflect strong demand and performance. Based on these factors, Weber has accordingly raised his EPS estimates and increased the price target to reflect Gartner’s premium multiples relative to the market, solidifying his Buy rating on the stock.
In another report released on November 21, Bank of America Securities also reiterated a Buy rating on the stock with a $500.00 price target.
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Based on the recent corporate insider activity of 154 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IT in relation to earlier this year.
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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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