In a report released today, Jason Haas CFA from Wells Fargo maintained a Sell rating on Gartner (IT – Research Report), with a price target of $400.00.
Jason Haas CFA has given his Sell rating due to a combination of factors impacting Gartner’s financial outlook. One of the primary concerns is the potential reduction in Research revenue guidance, influenced by the effects of DOGE and broader macroeconomic uncertainties. These factors have escalated since the last report, and Gartner’s sales are heavily weighted towards the end of the quarter, adding to the risk. Additionally, there is a significant threat from elevated cancellations, particularly from the US federal government, which represents a notable portion of Gartner’s revenue.
Furthermore, Gartner’s quota-bearing headcount is at risk of being reduced, which could delay the recovery of contract value. Investors are also increasingly worried about the potential impact of generative AI technologies, which could serve as alternatives to some of Gartner’s offerings. Although Gartner provides unique value through its primary research and other services, the long-term threat remains a concern. These factors contribute to a cautious growth outlook, leading to a lower price target and the Sell rating.
Based on the recent corporate insider activity of 154 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IT in relation to earlier this year.