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Gartner’s Mixed Outlook: Positive Contract Growth Amid Cautious Future Guidance

Gartner’s Mixed Outlook: Positive Contract Growth Amid Cautious Future Guidance

Gartner (ITResearch Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Toni Kaplan from Morgan Stanley maintained a Hold rating on the stock and has a $555.00 price target.

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Toni Kaplan’s rating is based on a combination of factors that reflect both positive developments and cautious outlooks for Gartner. The company’s contract value growth has shown improvement, particularly in the technology vendor segment, which has been a previous challenge. However, the guidance for 2025 fell short of expectations regarding revenue, adjusted EBITDA, adjusted EPS, and free cash flow, which were notably lower than anticipated.
While Gartner has demonstrated an ability to accelerate contract value growth, the conservative guidance and the expectation of increased hiring costs suggest a cautious approach. The management’s guidance on EBITDA margins also came as a surprise, as it indicated a decrease compared to the previous year. These elements together contribute to the decision to maintain a Hold rating, suggesting a balance between recent positive performance and future uncertainties.

In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a $525.00 price target.

Based on the recent corporate insider activity of 167 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.

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