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Investing.com - TD Cowen has reduced its price target on Globant S.A. (NYSE:GLOB) to $92.00 from $120.00 while maintaining a Buy rating on the digital technology services company. The stock, currently trading at $78.12 with a market capitalization of $3.44 billion, has seen its price decline by over 63% year-to-date, according to InvestingPro data.
The firm’s adjustment follows Globant’s second-quarter results, which met the company’s targets but included a revised outlook for the second half of the year due to pressure from select clients, reducing full-year 2025 constant currency growth by one percentage point. Despite these challenges, the company maintains strong fundamentals with an 11.9% revenue growth and a P/E ratio of 22.59.
TD Cowen noted that Globant’s updated outlook does not rely on incremental deal closures, and the company’s pipeline growth remains strong. However, the firm highlighted that deal closures are proceeding slowly, and consistent execution will be necessary to stabilize investor sentiment.
Amid macroeconomic pressures, Globant is focusing on business optimization and transitioning to a consumption-based agentic delivery model, according to the research note.
The price target reduction reflects TD Cowen’s lowered estimates for Globant, though the firm continues to recommend buying the stock despite the challenges. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which offers deep-dive analysis of this and 1,400+ other US stocks.
In other recent news, Globant S.A. reported its second-quarter earnings, slightly surpassing analyst expectations. The company posted adjusted earnings per share of $1.53, just above the consensus estimate of $1.51. Revenue for the quarter reached $614.2 million, exceeding the anticipated $612.54 million, which marks a 4.5% increase year-over-year. Despite these positive results, the company’s guidance fell short of Wall Street estimates, leading to a 6.6% drop in shares. Goldman Sachs responded by maintaining its Neutral rating on Globant stock, with a price target of $105.00. The investment bank attributed the modest reduction in revenue guidance to weaker underlying demand in Globant’s markets. These developments highlight the challenges the company faces in meeting market expectations.
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