AZTR receives NYSE delisting warning over equity requirement
Investing.com - Mizuho (NYSE:MFG) has lowered its price target on Globant S.A. (NYSE:GLOB) to $91.00 from $153.00 while maintaining an Outperform rating on the stock. The company’s shares, currently trading at $66.46, have declined over 67% in the past year, with InvestingPro data showing the stock trading near its 52-week low of $64.51.
The adjustment follows Globant’s recent earnings report, in which the company reduced its 2025 constant currency revenue growth guidance to at least 1% from a previous forecast of at least 2%, or at least -1% when excluding acquisitions.
According to Mizuho, the guidance reduction primarily stems from elongated sales cycles due to macroeconomic uncertainty and lower expected customer spending, particularly in Professional Services and Technology sectors.
The research firm noted that Globant faces growth challenges in the coming year due to lower pipeline conversion in recent quarters, along with difficulties in regions and sectors that have historically performed well for the company, including Latin America and Professional Services.
Despite the dimmer outlook, Mizuho remains upbeat on Globant’s longer-term prospects, noting that the current valuation of approximately 10 times 2026 estimated adjusted earnings per share adequately reflects the reduced growth expectations. According to InvestingPro analysis, the stock appears undervalued at current levels, with additional metrics and insights available in the comprehensive Pro Research Report.
In other recent news, Globant S.A. reported second-quarter earnings that slightly exceeded analyst expectations, with adjusted earnings per share at $1.53 compared to the forecasted $1.51. The company’s revenue reached $614.2 million, surpassing the anticipated $612.54 million and marking a 4.5% year-over-year increase. Despite these positive results, Globant issued guidance that fell short of Wall Street estimates, leading to investor concern. Needham has lowered its price target for Globant to $85, maintaining a Buy rating, due to a weaker demand outlook, particularly in North America. This outlook is influenced by reduced spending from a significant customer, with management expecting these conditions to persist. Similarly, TD Cowen adjusted its price target to $92, citing slower deal closures and a revised outlook for the year’s second half. Goldman Sachs reiterated a Neutral rating, maintaining a $105 price target, as they noted a modest reduction in revenue guidance linked to weaker demand in Globant’s markets. These developments reflect the challenges Globant faces amid shifting market dynamics.
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