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In a challenging market environment, Gartner Inc. (NYSE:IT) stock has recorded a new 52-week low, dipping to $408. With a market capitalization of $31.2 billion and a P/E ratio of 26.2, InvestingPro analysis suggests the stock is trading slightly above its Fair Value. The research and advisory firm, known for its critical insights into the IT industry, has faced headwinds that have pressured its stock price over the past year. Despite maintaining 6.1% revenue growth and earning a GOOD financial health score from InvestingPro, this latest price level reflects a significant retreat from more favorable valuations, with the company’s shares experiencing a 1-year change of -12.77%. Investors are closely monitoring Gartner’s performance as the company navigates through the evolving market conditions that have impacted its stock valuation. Discover 13 additional exclusive ProTips and comprehensive analysis in the Pro Research Report, available with an InvestingPro subscription.
In other recent news, Gartner Inc. reported fourth-quarter results that surpassed analyst expectations, with adjusted earnings per share reaching $5.45, significantly higher than the consensus estimate of $3.26. The company also reported revenue of $1.7 billion, slightly above the anticipated $1.69 billion. Gartner’s contract value, a crucial indicator of future revenue, increased by 8% year-over-year to $5.3 billion. For the full year 2024, Gartner’s revenue rose to $6.3 billion, marking a 6% increase from the previous year, while adjusted earnings per share climbed 24% to $14.09. The Research segment, Gartner’s largest revenue contributor, grew by 5% in the fourth quarter, with the Conferences and Consulting segments experiencing growth of 17% and 19%, respectively.
In contrast, UBS analysts recently adjusted their outlook on Gartner, lowering the stock price target to $565 from $632, while maintaining a Buy rating. This revision reflects concerns about business confidence and potential impacts from the cryptocurrency DOGE. UBS analysts are considering a slightly lower growth rate for Gartner’s first quarter, estimating it in the low to mid-7% range, compared to their previous projection of 7.9%. Despite the reduced price target, Gartner’s shares have seen a devaluation below the 3-year average multiples, which could offer some support to the stock price.
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