Wang & Lee Group board approves 250-to-1 reverse share split
Monday, Mizuho (NYSE:MFG) analysts adjusted their outlook on Globant S.A. (NYSE: GLOB), reducing the price target to $235 from the previous $247, while continuing to endorse the stock with an Outperform rating. The stock, currently trading at $151.72, has fallen over 32% in the past week, placing it near its 52-week low of $151.38. According to InvestingPro data, the stock’s RSI suggests oversold conditions. The revision follows Globant’s fourth-quarter 2024 financial report and the company’s initial 2025 organic constant currency (CC) growth guidance, which came in below market expectations.
Globant’s guidance suggested a +9.5% organic CC growth rate for 2025, which did not meet the low double-digit growth anticipated by investors. The company has maintained strong fundamentals with a 15.26% revenue growth in the last twelve months and healthy margins, as shown by InvestingPro’s analysis of over 100+ financial metrics. Mizuho’s analysts pointed to Latin American macroeconomic challenges and a slower-than-anticipated growth forecast for Disney (NYSE:DIS) as the primary reasons for the subdued guidance.
Despite the lower guidance, Mizuho encourages investors to consider purchasing Globant shares during any potential dips in the stock price. Their optimism is based on two factors: the expectation that organic CC growth will accelerate throughout the year as significant projects in the Middle East commence, and Globant’s competitive position, boasting nearly +10% organic CC growth coupled with an improving profitability outlook.
In light of these factors, Mizuho has revised its revenue and earnings per share (EPS) estimates for Globant for the years 2025 and 2026. The new price target of $235 reflects these adjustments but still supports the firm’s Outperform rating on the stock. The analysts conclude that despite near-term headwinds, Globant’s long-term prospects remain promising.
In other recent news, Globant S.A. reported its fourth-quarter earnings for 2024, revealing mixed results. While the company achieved adjusted earnings per share of $1.75, surpassing analyst estimates of $1.73, its revenue of $642.5 million fell short of the expected $645.44 million. Globant’s guidance for the first quarter and full year of 2025 also disappointed, with projections of adjusted EPS between $1.55-$1.63 on revenue of $618-628 million, below analysts’ expectations of $1.65 EPS and $637 million in revenue. The full-year forecast was similarly underwhelming, with expected EPS of $6.80-$7.20 on revenue of $2.635-2.705 billion, compared to analyst predictions of $7.34 EPS and $2.746 billion in revenue.
Analyst firms have responded to these developments by adjusting their price targets for Globant. Needham, Mizuho, TD Cowen, and JPMorgan all reduced their price targets while maintaining positive ratings, indicating continued confidence in the company’s long-term potential despite current challenges. Needham lowered its target to $220, citing foreign exchange headwinds and reduced spending by a major client, Disney. Mizuho set its target at $235, emphasizing macroeconomic challenges in Latin America. TD Cowen adjusted its target to $245, reflecting concerns over growth recovery, while JPMorgan set its target at $242, noting a downturn in the Latin American market.
The analysts highlighted Globant’s strong organic growth and potential in emerging technologies like Generative AI, suggesting that these factors could drive future growth. Despite the immediate hurdles, the consensus among analysts appears to be that Globant’s issues are temporary, with potential for improvement as the year progresses. Investors are advised to monitor Globant’s strategic moves and market performance closely as the company navigates these challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.