Goldman Sachs raises its gold price target to $4,900 by end-2026
Investing.com - RBC Capital initiated coverage on Gartner (NYSE:IT), a prominent player in IT Services with a market cap of $18.7 billion, with a Sector Perform rating and a price target of $263.00 on Tuesday. According to InvestingPro data, the stock has seen a significant decline of nearly 50% over the past year.
The research firm acknowledged Gartner’s global leadership position in IT research and advisory services, highlighting its proprietary and unbiased research capabilities as key strengths.
RBC Capital noted that Gartner’s business model benefits from a powerful network effect and successful land-and-expand strategy, which has driven double-digit Contract Value (CV) growth over the past decade.
Despite these strengths, the firm cited moderating Contract Value growth as a concern, pointing to previous weakness in the tech vendor segment and current headwinds related to DOGE and tariffs in 2025.
RBC Capital also expressed caution about potential Generative AI disintermediation risks, indicating it would need to see a reacceleration in CV growth before taking a more positive stance on the stock.
In other recent news, Gartner Inc. reported its second-quarter earnings for 2025, surpassing analyst expectations with an adjusted earnings per share (EPS) of $3.53, compared to the forecasted $3.30. The company’s revenue for the quarter reached $1.7 billion, slightly above the anticipated $1.68 billion, marking a 6% increase from the previous year. Despite these positive earnings results, Gartner’s stock experienced a notable decline in pre-market trading. Wolfe Research recently initiated coverage on Gartner with a Peerperform rating, setting a year-end 2026 price target range of $240 to $300. This development follows a significant 48.2% year-to-date decline in Gartner shares, as reported by Wolfe Research. The company’s stock performance has underperformed compared to the S&P 500’s 9.8% gain. These recent developments provide insights into the company’s financial health and market positioning.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.