Forrester Research: Hold Rating Amid Revenue Decline and Mixed Financial Outlook

Barrington analyst Vincent Colicchio has maintained their neutral stance on FORR stock, giving a Hold rating on May 7.

Vincent Colicchio’s rating is based on Forrester Research’s recent financial performance and future outlook. The company reported a decline in total revenue for Q1/25, missing both the analyst’s and FactSet’s forecasts. This decline was observed across all segments, with Research Services, Consulting Services, and Event Services all showing year-over-year and sequential decreases.
Despite the revenue shortfall, Forrester exceeded earnings expectations with a non-GAAP EPS of $0.11, surpassing forecasts due to a better-than-expected adjusted EBITDA margin. Additionally, the sales pipeline has shown improvement, increasing 33% year-over-year. However, the prolonged sales cycles caused by economic uncertainty pose a challenge to growth. Given these mixed signals and a weak financial outlook for 2025, Colicchio has maintained a Hold rating on the stock, reflecting the high business risk and uncertain future performance.

In another report released on May 7, Sidoti also maintained a Hold rating on the stock with a $14.00 price target.