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Investing.com - UBS has reiterated its Neutral rating on Gartner (NYSE:IT) with a price target of $280.00, following the company’s investor event at its flagship IT Symposium in Orlando on Tuesday. The target represents a 12% upside from the current price of $249.27. According to InvestingPro data, Gartner appears undervalued, with the stock down over 55% in the past year despite maintaining a "GOOD" overall financial health score.
UBS analyst Joshua Chan noted that the IT Symposium appeared to maintain historical attendance levels based on casual observation, with management discussions primarily focused on Gartner’s longer-term strategic positioning. The company’s strong fundamentals are evident in its healthy 68% gross profit margin and robust free cash flow yield of 8%.
The analyst detected a "slightly positive" body language from management, who mentioned a stabilization in the tariff environment compared to the second quarter and reiterated potential to re-accelerate contract value (CV) growth to high single digits or low double digits percentage in 2026.
While UBS acknowledged that Gartner shares "are likely inexpensive" if these targets are achieved in 2026, the firm expressed concern about "significant risk" regarding contract value growth in the second half of 2025, given non-core contract value indicator (NCVI) seasonality.
This second-half 2025 performance could "directly impact the level of CV growth ultimately achieved in 2026," according to the UBS research note.
In other recent news, Gartner 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 projection of $1.68 billion, marking a 6% increase from the previous year. Additionally, Gartner expanded its share buyback authorization to $1 billion from the previous $450 million, as noted by UBS, which maintained a Neutral rating and a $270 price target. Truist Securities initiated coverage on Gartner with a Buy rating, citing the stock’s undervaluation, with a price target of $300. RBC Capital also began coverage with a Sector Perform rating and a price target of $263, highlighting Gartner’s strengths in IT research and advisory services. Wolfe Research initiated coverage with a Peerperform rating and a year-end 2026 price target range of $240-$300. These developments reflect varied analyst perspectives on the company’s financial and market positioning.
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