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Investing.com - Goldman Sachs maintained its Neutral rating and $105.00 price target on Globant S.A. (NYSE:GLOB) following the company’s recent results. According to InvestingPro data, the company currently trades at $78.12, with analysis suggesting the stock may be undervalued.
The investment bank cited a modest reduction in revenue guidance, partially attributed to increasingly weaker underlying demand in Globant’s markets. Despite maintaining 11.9% revenue growth in the last twelve months, the stock has declined 65.2% over the past six months.
Goldman Sachs acknowledged that Globant’s competitive technology advantage remains intact, with potential to capitalize on its extensive pipeline of next-generation project work in the future. The company maintains healthy profitability with a diluted EPS of $3.38 and operates with moderate debt levels.
The firm noted that it may take several quarters before the markets and clients to which Globant is most heavily exposed return to a favorable growth profile.
Goldman Sachs indicated it sees few catalysts for Globant stock to outperform until the company begins to experience a recovery in end demand.
In other recent news, Globant SA reported its second-quarter earnings, which slightly surpassed analyst expectations. The company posted adjusted earnings per share of $1.53, just above the consensus estimate of $1.51. Revenue for the quarter was $614.2 million, slightly exceeding the expected $612.54 million, marking a 4.5% year-over-year increase. Despite these positive earnings results, Globant issued guidance that fell short of Wall Street estimates across all metrics, which caught the attention of investors. The company’s outlook appeared to be the primary focus, overshadowing the modest earnings beats. This development comes amid a period of heightened scrutiny from analysts and investors alike. The recent guidance has raised questions about the company’s future performance, as analysts and investors assess the implications of the lower-than-expected projections.
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