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Investing.com - Wolfe Research initiated coverage on Gartner (NYSE:IT) with a Peerperform rating and a year-end 2026 price target range of $240-$300. According to InvestingPro data, Gartner currently maintains strong financial health with a ’GOOD’ overall score, supported by robust profitability metrics and a healthy balance sheet.
Gartner shares have declined 48.2% year-to-date, significantly underperforming the S&P 500’s 9.8% gain and the Wolfe Business and Information Services index’s 5% decline, according to Wolfe Research.
The firm’s price target represents approximately 7-8% upside from Gartner’s previous closing price, based on a 1.3x PEG ratio applied to Wolfe’s projected 2027 EPS growth estimate of 14% and a 16-20x multiple on its 2027 adjusted EPS estimate of $14.82. The company currently trades at a P/E ratio of 15.2x and maintains a strong free cash flow yield of 8%.
Wolfe Research’s earnings per share estimates for Gartner are $12.15 for 2025, $12.96 for 2026, and $14.82 for 2027, slightly below the Street consensus of $12.19, $13.03, and $15.04, respectively.
The research firm noted that Gartner is currently trading at 19.7x next-twelve-months EPS, well below its historical 1-, 3-, and 5-year median multiples of 36.8x, 34.9x, and 36.9x, with shares under pressure due to budget constraints and concerns about AI disintermediation.
In other recent news, Gartner Inc. reported its second-quarter earnings for 2025, exceeding analyst expectations. The company achieved an adjusted earnings per share (EPS) of $3.53, surpassing the forecasted $3.30. Additionally, Gartner’s revenue for the quarter reached $1.7 billion, slightly above the projected $1.68 billion, marking a 6% increase compared to the previous year. Despite these positive earnings and revenue results, Gartner’s stock faced a significant decline. The stock dropped 27.62% in pre-market trading, although this movement is not the focus of this report. These developments are part of the recent updates concerning Gartner.
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