Gartner, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Joshua Chan from UBS downgraded the rating on the stock to a Hold and gave it a $270.00 price target.
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Joshua Chan has given his Hold rating due to a combination of factors affecting Gartner’s growth outlook. The company’s CV growth is projected to slow down, exiting 2025 at a rate of 2.5%, a significant decrease from the previous estimate of 5.1%. This adjustment is primarily due to a substantial miss in Q2, which has led to a downward revision of near-term NCVI assumptions. Consequently, Gartner’s organic growth forecast for 2026 has been reduced from 6% to 3%.
Despite the potential long-term value of Gartner’s stock, with valuations at 12 times 2026 EBITDA and 16 times free cash flow, the near-term prospects appear limited. The Q2 CV miss has reset the growth trajectory, and with CV growth expected to continue its slowdown through the fourth quarter, immediate upside seems constrained. Additionally, while the shares are considered inexpensive, the current environment of discretionary spending cuts poses challenges to achieving near-term traction.
According to TipRanks, Chan is a 4-star analyst with an average return of 9.8% and a 64.29% success rate. Chan covers the Industrials sector, focusing on stocks such as Comfort Systems, Kforce, and ManpowerGroup.
In another report released on July 31, Morgan Stanley also maintained a Hold rating on the stock with a $455.00 price target.