BMO Capital lowers Gartner stock price target to $254 from $272

Investing.com - BMO Capital has reduced its price target on Gartner (NYSE:IT) to $254.00 from $272.00 while maintaining a Market Perform rating on the stock. This comes as Gartner shares have declined 55.76% over the past year, currently trading at $227.17, near its 52-week low of $223.23. According to InvestingPro data, the company appears undervalued with a Fair Value assessment above current levels.

The research firm noted that Gartner delivered a margin-driven earnings beat despite experiencing slowing contract value (CV) growth, which was affected by continued federal government pressure and impacts on tariff-affected industries, particularly within the company’s GBS segment. Despite these challenges, Gartner maintains a solid financial foundation with diluted earnings per share of $11.49 and annual revenue of $6.46 billion, reflecting 5.24% growth.

BMO Capital observed that while Gartner continues to face a challenging selling environment, evidenced by declining new business and retention issues, some of the previously challenged contract value areas appear to be improving, with most federal government contract value now transacted and greater clarity emerging within tariff-impacted industries.

Gartner’s management has raised its operational guidance for 2025 following the earnings beat and some improvement in previously challenged areas, though BMO Capital believes investors remain more focused on the company’s 2026 expectations. InvestingPro analysis shows Gartner has a strong free cash flow yield of 7% and maintains a "GOOD" overall financial health score, suggesting resilience despite recent market challenges. For deeper insights into Gartner’s valuation and prospects, access the comprehensive Pro Research Report available for this and 1,400+ other US equities.

The firm has raised its earnings estimates for Gartner despite the price target reduction, reflecting the mixed outlook for the research and advisory company’s near-term performance. With a current P/E ratio of 21.4, Gartner is trading at a relatively low multiple compared to its near-term earnings growth potential.

In other recent news, Gartner Inc. reported its third-quarter 2025 earnings, exceeding Wall Street expectations with an adjusted earnings per share (EPS) of $2.76, compared to the anticipated $2.43. This represents a 13.58% surprise for analysts and investors alike. The company’s revenue for the quarter was $1.5 billion, which was in line with forecasts and indicated a 3% increase from the previous year. These results highlight Gartner’s continued financial stability and growth.

Analysts from various firms have noted the positive earnings performance, which has contributed to a favorable outlook for the company. The strong earnings report reflects Gartner’s strategic initiatives and market position. There have been no recent reports of mergers or acquisitions involving Gartner. However, the company’s ability to meet and exceed earnings expectations has been a point of interest for investors. These developments underscore the company’s operational effectiveness and financial health.

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