FTSE 100: Index falls as earnings results weigh; pound below $1.33, Bodycote soars
On Thursday, Piper Sandler reiterated its Overweight rating on Globant S.A. (NYSE:GLOB) with a steady price target of $237.00. According to InvestingPro data, this target aligns with the current Fair Value calculation, suggesting the stock is fairly valued at its current price of $218.79. The firm’s analyst projects that Globant will announce fiscal year 2025 targets that align with current consensus expectations and offer optimistic commentary on its future performance. The analyst anticipates a modest revenue increase above fourth-quarter consensus, which is at the mid-point of the company’s guidance. With a strong financial health score of "GOOD" from InvestingPro, the company appears well-positioned for future growth.
For the upcoming fiscal year, the expectation is that Globant will set its revenue growth targets close to the consensus, with organic growth around 11% and an additional 2% coming from mergers and acquisitions. This projection follows the company’s impressive last twelve months revenue growth of 17.35%. Piper Sandler has slightly revised its first-half estimates for the year, resulting in a $30 million reduction in the FY25 estimate, bringing the growth rate down from 14.3% to 13%, equaling $2,734 million in revenue. For deeper insights into Globant’s growth metrics and financial performance, InvestingPro subscribers can access comprehensive analysis and additional ProTips.
The optimism from Piper Sandler is partly based on a recent visit to Globant’s headquarters in Argentina and subsequent industry checks, which suggest an improving demand environment. Despite this, the analyst predicts that Globant will approach the start of the year with caution due to modest adjustments made in the previous year and as the company waits for budgets to finalize.
The firm encourages investors to consider purchasing Globant shares if any weakness emerges around the quarterly report, expressing confidence in the company’s potential for industry-leading growth rates. This potential is supported by the ramp-up of new large deals, strong relationships with major clients, and robust performance in Europe and emerging markets. Piper Sandler’s stance remains bullish on Globant’s prospects.
In other recent news, Globant has been the subject of several analyst upgrades and buoyant growth predictions. TD Cowen raised its price target for the company, first to $240 and later to $270, maintaining a Buy rating and highlighting the firm as a Best Idea for 2025. Needham also increased its price target from $245 to $265 following strong third-quarter results, while CFRA set its target at $248.
The company’s performance has been bolstered by organic growth and the adoption of artificial intelligence (AI)-led solutions, which are expected to further enhance growth in the future. Globant’s third-quarter revenue was reported at $614.7 million, marking a year-over-year growth of 12.7%, with AI-related revenue exceeding $250 million.
These recent developments underscore Globant’s robust growth trajectory and the positive sentiment among analysts. The company’s strategic investments in AI and global market expansion, particularly in the Middle East and Europe, are expected to drive future growth. Despite some challenges, the long-term outlook for Globant remains bullish, supported by strong demand across various sectors and a growing workforce nearing 30,000 employees.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.