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On Thursday, Jefferies analyst Surinder Thind adjusted the price target for Globant S.A. (NYSE: GLOB) shares, reducing it to $125 from the previous target of $150. Despite this change, the firm maintained its Buy rating on the stock. Thind’s assessment followed a notable decrease in Globant’s stock value, which fell approximately 28% after the company released its first quarter earnings and updated its revenue guidance for the year 2025. The stock’s decline is part of a broader downward trend, with InvestingPro data showing a 55% drop over the past six months and current analyst targets ranging from $108 to $256.
Thind pointed out that while Globant has traditionally been an expensive stock to own, the recent guide-down for 2025 revenue and subsequent stock correction should attract a broader range of investors, including those focused on growth, GARP (Growth at a Reasonable Price), and value. The analyst emphasized that Globant continues to be a high-quality asset with expectations to return to double-digit organic growth by the end of 2026. According to InvestingPro analysis, the company currently trades at a P/E ratio of 29.7 and maintains healthy financials with a moderate debt level, suggesting potential value at current levels.
The firm projects a mid-teens compound annual growth rate (CAGR) for Globant’s revenue over a three-year period through 2028. This projection serves as a baseline for Jefferies’ outlook on the company’s financial trajectory. In line with the revised revenue expectations, Jefferies also adjusted its forecast for the company’s adjusted earnings per share (EPS) for 2025, decreasing it by 6% or $0.40 to a new estimate of $6.25.
Thind reiterated the Buy rating for Globant, signaling confidence in the company’s potential for recovery and growth in the coming years. This rating suggests that Jefferies continues to see the stock as a worthwhile investment despite the recent challenges and adjustments to financial forecasts.
In other recent news, Globant S.A. has faced multiple adjustments in its financial outlook following its first-quarter results, which fell short of expectations. The company reported a revenue and earnings per share (EPS) miss of 2% and 5%, respectively, leading to a revised forecast projecting further decreases in revenue and EPS for the upcoming quarters. In response, TD Cowen reduced its price target for Globant to $125 while maintaining a Buy rating, citing cyclical challenges. Similarly, Mizuho (NYSE:MFG) Securities cut its price target to $153, maintaining an Outperform rating, and noted the impact of weaker performance expectations in Latin America. Goldman Sachs downgraded Globant from Buy to Neutral, slashing the price target to $120, while Needham lowered its target to $115 but upheld a Buy rating. JPMorgan also revised its price target to $108, maintaining an Overweight rating, despite the significant revision of future revenue estimates. These adjustments reflect the broader economic uncertainties impacting Globant’s markets, particularly in Latin America and the B2B2C verticals. Analysts suggest that while the immediate outlook is challenging, the company’s long-term prospects remain positive, supported by a growing business pipeline.
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