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Investing.com - Jefferies has reduced its price target on Globant S.A. (NYSE:GLOB) to $88.00 from $90.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock is currently trading near its 52-week low of $82.39, with analyst targets ranging from $87 to $230.
The adjustment comes as Globant reported preliminary second-quarter 2025 sales of approximately $745 million, exceeding consensus estimates of $740 million. Core sales reached $651 million, representing a 3.3% year-over-year increase, or 4.8% on an adjusted basis, compared to consensus expectations of $649 million. The company has maintained strong revenue growth of 11.9% over the last twelve months, with a healthy P/E ratio of 24.6x.
Jefferies characterized these results as "better than feared," noting they came despite disruption in the first quarter and investor concerns about NVRO.
The company announced a leadership change, with CFO Keith Pfeil appointed as CEO, while Dan Scavilla transitions to become CEO at XRAY.
Globant has reaffirmed its fiscal year 2025 sales and EPS guidance, prompting Jefferies to lower its estimates to above the midpoint from the high end of the range, resulting in the price target reduction while maintaining its positive outlook on the stock.
In other recent news, Globant S.A. has been in the spotlight due to several key developments. The company reported a significant adjustment in its revenue guidance for 2025, prompting Jefferies to lower its price target from $150 to $125 while maintaining a Buy rating. Similarly, TD Cowen reduced its price target for Globant to $125 from $160, citing macroeconomic pressures and a strategy to de-risk, but also kept a Buy rating. Canaccord Genuity also adjusted its price target downward to $97 from $165, reflecting macroeconomic uncertainties, yet acknowledged the company’s long-term potential in AI and client growth.
Globant recently launched its AI Pods, a subscription-based model for AI services, aiming to provide scalable solutions across industries like finance and retail. This new offering, powered by Globant’s AI accelerator platform, is designed to reduce costs and delivery timeframes. Additionally, the company inaugurated its Middle East Regional Headquarters in Riyadh, Saudi Arabia, marking a significant expansion in the region. This move aligns with the growing digital transformation market in the Middle East and is expected to support local IT talent development.
Globant’s revenue in the Middle East & APAC surged by 84.4% year-over-year in Q1-25, indicating its increasing influence. The Riyadh office will also feature an innovative space for immersive experiences, supporting Saudi Arabia’s Vision 2030. These recent initiatives and adjustments highlight Globant’s strategic efforts to navigate current economic challenges while positioning itself for future growth.
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