Gartner initiated with a Sector Perform at RBC Capital

RBC Capital initiated coverage of Gartner (IT) with a Sector Perform rating and $263 price target The firm is positive on the company’s global leadership in IT research and advisory services being underpinned by its proprietary and unbiased research, bolstered by a powerful network effect and a successful land-and-expand strategy, which has driven double-digit Contract Value CAGR over the past decade. RBC adds however that Contract Value growth has moderated – previously due to tech vendor weakness and, this year, due to DOGE and tariff-related headwinds. The firm further notes that it prefers to have greater clarity on concerns surrounding Generative AI disintermediation and would like to see a reacceleration in CV growth before adopting a more constructive stance.