Wang & Lee Group board approves 250-to-1 reverse share split
On Wednesday, Jefferies adjusted its outlook on Globant S.A. (NYSE: GLOB) shares, reducing the price target from $255.00 to $210.00, while reaffirming a Buy rating for the company. The revision follows a recent earnings report that led to a significant drop in the company’s stock value, with shares currently trading at $156.01 and down over 28% in the past week. InvestingPro analysis reveals 12 key investment signals for Globant, including several indicators suggesting the stock may be oversold.
The report by Jefferies acknowledges that owning Globant has traditionally been costly, trading at a P/E ratio of 40.27 and a PEG ratio of 18.48, but points out that following a disappointing revenue forecast for 2025 and a 28% decline in stock price post-earnings, an entry point has emerged for Growth at a Reasonable Price (GARP) or investors seeking more value. Despite the lowered expectations, Jefferies still sees Globant as a high-quality asset that continues to produce double-digit organic growth, with revenue growing at 15.26% over the last twelve months. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels.
Looking ahead, the firm anticipates that starting in 2026, Globant will maintain a mid-teen compound annual growth rate (CAGR) in revenue over a three-year period. This projection supports the analyst’s continued positive stance on the stock.
The updated analysis also includes a revised adjusted earnings per share (EPS) forecast for 2025, which has been decreased by 4.2% to $7.01. The revision reflects the immediate financial adjustments following the earnings report and updated revenue guidance.
By reiterating the Buy rating, Jefferies signals its belief in the long-term value and growth potential of Globant, despite the near-term challenges reflected in the reduced price target and earnings expectations. The firm’s outlook suggests confidence in the company’s ability to recover and grow in the coming years.
In other recent news, Globant S.A. has seen several adjustments to its stock ratings and price targets following its latest financial reports. Redburn-Atlantic upgraded Globant’s stock rating from Sell to Neutral and raised the price target to $150. This change was influenced by a reassessment of the company’s prospects after its fiscal year 2024 results, which did not fully meet high market expectations. Mizuho (NYSE:MFG), while maintaining an Outperform rating, reduced its price target to $235 due to lower-than-expected guidance for 2025, citing challenges in Latin America and slower growth for Disney (NYSE:DIS). Needham also adjusted its price target from $265 to $220, maintaining a Buy rating despite mixed fourth-quarter results and weaker guidance for 2025. They remain optimistic about Globant’s ability to navigate short-term challenges and capitalize on growth opportunities, particularly with the adoption of Generative AI technology. TD Cowen kept a Buy rating but lowered the price target to $245, acknowledging the company’s strong organic growth but noting recent softness in its financial forecasts. These developments reflect the market’s response to Globant’s current performance and future potential.
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