Citigroup Begins Coverage on Globant (NYSE:GLOB)

Key Points

• Citigroup has initiated coverage on Globant with a "neutral" rating and a price target of $67.00, indicating a potential upside of 12.63% from its previous close.
• Globant has experienced significant price target reductions from various analysts, with most analysts currently having a consensus rating of "Hold" and an average target price of $122.13.
• The company announced a stock buyback plan allowing for the repurchase of $125 million in shares, suggesting that its board believes the stock is undervalued.

Research analysts at Citigroup began coverage on shares of Globant (NYSE:GLOB - Get Free Report) in a research note issued on Wednesday,Benzinga reports. The brokerage set a "neutral" rating and a $67.00 price target on the information technology services provider's stock. Citigroup's price objective points to a potential upside of 12.63% from the company's previous close.

GLOB has been the topic of a number of other research reports. JPMorgan Chase & Co. lowered shares of Globant from an "overweight" rating to a "neutral" rating and set a $78.00 price target on the stock. in a report on Friday, August 15th. The Goldman Sachs Group decreased their price target on shares of Globant from $105.00 to $90.00 and set a "neutral" rating on the stock in a report on Thursday, October 9th. Deutsche Bank Aktiengesellschaft started coverage on shares of Globant in a report on Thursday, July 17th. They issued a "hold" rating and a $87.00 price target on the stock. UBS Group reduced their target price on shares of Globant from $120.00 to $75.00 and set a "neutral" rating on the stock in a report on Wednesday, August 20th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Globant in a report on Wednesday, October 8th. Seven research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Globant presently has a consensus rating of "Hold" and a consensus target price of $122.13.

Globant Trading Down 2.9%

NYSE GLOB traded down $1.80 during mid-day trading on Wednesday, reaching $59.49. 1,491,663 shares of the stock were exchanged, compared to its average volume of 1,231,309. Globant has a 1-year low of $54.36 and a 1-year high of $238.32. The business's fifty day simple moving average is $61.74 and its 200 day simple moving average is $86.35. The stock has a market capitalization of $2.62 billion, a PE ratio of 24.18, a PEG ratio of 5.53 and a beta of 1.17. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.71 and a current ratio of 1.71.

Globant (NYSE:GLOB - Get Free Report) last announced its earnings results on Thursday, August 14th. The information technology services provider reported $1.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.52 by $0.01. Globant had a net margin of 4.44% and a return on equity of 10.76%. The firm had revenue of $614.18 million for the quarter, compared to analyst estimates of $612.66 million. During the same quarter last year, the business earned $1.51 earnings per share. Globant's revenue was up 4.5% compared to the same quarter last year. Globant has set its Q3 2025 guidance at 1.530- EPS. FY 2025 guidance at 6.120- EPS. On average, research analysts anticipate that Globant will post 5.73 earnings per share for the current fiscal year.

Globant declared that its board has approved a stock buyback plan on Wednesday, October 1st that allows the company to repurchase $125.00 million in shares. This repurchase authorization allows the information technology services provider to repurchase up to 5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Invesco Ltd. lifted its holdings in Globant by 199.1% in the 2nd quarter. Invesco Ltd. now owns 2,827,155 shares of the information technology services provider's stock valued at $256,819,000 after acquiring an additional 1,881,940 shares during the last quarter. Victory Capital Management Inc. lifted its holdings in Globant by 6.2% in the 1st quarter. Victory Capital Management Inc. now owns 1,704,973 shares of the information technology services provider's stock valued at $200,709,000 after acquiring an additional 98,863 shares during the last quarter. Westfield Capital Management Co. LP lifted its stake in Globant by 34.1% during the second quarter. Westfield Capital Management Co. LP now owns 1,100,526 shares of the information technology services provider's stock valued at $99,972,000 after purchasing an additional 280,081 shares during the last quarter. Schroder Investment Management Group lifted its stake in Globant by 20.1% during the second quarter. Schroder Investment Management Group now owns 1,006,175 shares of the information technology services provider's stock valued at $91,401,000 after purchasing an additional 168,700 shares during the last quarter. Finally, Royal Bank of Canada lifted its stake in Globant by 293.5% during the first quarter. Royal Bank of Canada now owns 999,955 shares of the information technology services provider's stock valued at $117,716,000 after purchasing an additional 745,848 shares during the last quarter. 91.60% of the stock is owned by institutional investors and hedge funds.

About Globant

Globant SA, together with its subsidiaries, provides technology services worldwide. It provides digital solutions comprising blockchain, cloud technologies, cybersecurity, data and artificial intelligence, digital experience and performance, code, Internet of Things, metaverse, and engineering and testing; and enterprise technology solutions and services, such as Agile organization, Cultural Hacking, process optimization services, as well as AWS, Google Cloud, Microsoft, Oracle, SalesForce, SAP, and ServiceNow technology solutions.

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