Needham analyst Mayank Tandon maintained a Buy rating on Globant SA today and set a price target of $85.00.
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Mayank Tandon has given his Buy rating due to a combination of factors including Globant SA’s recent performance and strategic initiatives. Although the company reported second-quarter results that slightly exceeded expectations, it adjusted its revenue outlook downward due to ongoing demand challenges, particularly in North America. Despite these challenges, Globant SA is actively implementing a business optimization plan that focuses on enhancing AI capabilities and transitioning to a subscription-based model, which has already shown positive client engagement with 18 new clients signed in the second quarter.
Furthermore, the company’s shares are anticipated to trade at a price-to-earnings multiple of approximately 11 times the fiscal year 2026 earnings per share estimate. This valuation presents an appealing risk-reward scenario for value investors. Consequently, while the target price has been adjusted to $85, the Buy rating is maintained, reflecting confidence in the company’s strategic direction and potential for future growth.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $92.00 price target.