Globant stock price target lowered to $75 from $120 at UBS

Investing.com - UBS has reduced its price target on Globant S.A. (NYSE:GLOB) to $75.00 from $120.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the stock currently trades at a P/E ratio of 27.4x, with analysts maintaining an overall bullish consensus recommendation of 1.9 (on a scale where 1 is Strong Buy).

The significant 37.5% reduction in price target comes as Globant shares have fallen 30% since UBS’s previous update, compared to a 9% decline in the broader IT Services Sector (or 15% excluding Accenture (NYSE:ACN)). InvestingPro data reveals the stock has declined 67.3% over the past six months and is currently trading near its 52-week low of $64.51.

UBS analyst Leonardo Olmos cited concerns about "short-to-medium term risks" facing the company, despite maintaining a "constructive view" on Globant’s long-term artificial intelligence potential.

The firm specifically highlighted "soft pipeline conversion outlook" as an ongoing concern for the digital technology services company.

UBS indicated that these challenges appear to be already reflected in Globant’s current market valuation, supporting the maintained Neutral rating despite the substantially reduced price target.

In other recent news, Globant S.A. reported second-quarter earnings that slightly exceeded analyst expectations, with adjusted earnings per share reaching $1.53, compared to the anticipated $1.51. The company also reported revenue of $614.2 million, surpassing the expected $612.54 million, marking a 4.5% year-over-year increase. Despite these figures, Globant issued guidance that fell short of Wall Street estimates, which has been a point of concern for investors. The company adjusted its 2025 constant currency revenue growth guidance to at least 1%, down from a previous forecast of at least 2%.

In response to these developments, several investment firms have revised their price targets for Globant. Mizuho (NYSE:MFG) lowered its price target to $91, citing a reduced growth outlook but maintained an Outperform rating. Needham adjusted its target to $85, pointing to weaker demand, particularly in North America, and maintained a Buy rating. TD Cowen also reduced its target to $92, noting slower deal closures while keeping a Buy rating. Meanwhile, Goldman Sachs reiterated a Neutral rating with a $105 price target, highlighting a modest reduction in revenue guidance due to weaker demand. These recent developments reflect the cautious stance of analysts regarding Globant’s future performance.

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