Wells Fargo Downgrades Gartner (IT) to Market Perform on Valuation
Tweet
Share
E-mailGet Alerts IT Hot Sheet
Price: $447.64 -0.76%
Rating Summary:
11 Buy, 9 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
Rating Summary:
11 Buy, 9 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
Join SI Premium – FREE
Wells Fargo downgraded Gartner (NYSE: IT) from Outperform to Market Perform with a price target of $68-$73. The change is tied to valuation.
Analyst William A. Warmington, Jr. said, "The stock is currently at the upper end of its relative performance band vs. the S&P 500 and at the upper end of its EV/NTM EBITDA range on both an absolute and relative basis. Given the high level of downside volatility that has accompanied 8 of the last 9 earnings reports, we are unwilling to stretch further on the multiple or raise our estimates (which are in line or slightly above the street) ahead of Q1 2014 results expected in early May. Our long-term thesis on the company remains unchanged – we view Gartner as an open-ended growth story with strong execution, attractive financial characteristics, excellent competitive positioning and shareholder-friendly capital return – but we are moving to the sidelines to await a better entry point for the stock. No change to our estimates or valuation range of $68-73 (14.0-15.0x 2015E EBITDA)."
For an analyst ratings summary and ratings history on Gartner click here. For more ratings news on Gartner click here.
Shares of Gartner closed at $72.70 yesterday.
Analyst William A. Warmington, Jr. said, "The stock is currently at the upper end of its relative performance band vs. the S&P 500 and at the upper end of its EV/NTM EBITDA range on both an absolute and relative basis. Given the high level of downside volatility that has accompanied 8 of the last 9 earnings reports, we are unwilling to stretch further on the multiple or raise our estimates (which are in line or slightly above the street) ahead of Q1 2014 results expected in early May. Our long-term thesis on the company remains unchanged – we view Gartner as an open-ended growth story with strong execution, attractive financial characteristics, excellent competitive positioning and shareholder-friendly capital return – but we are moving to the sidelines to await a better entry point for the stock. No change to our estimates or valuation range of $68-73 (14.0-15.0x 2015E EBITDA)."
For an analyst ratings summary and ratings history on Gartner click here. For more ratings news on Gartner click here.
Shares of Gartner closed at $72.70 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BOK Financial (BOKF) PT Raised to $97 at DA Davidson
- W.R. Berkley (WRB) PT Lowered to $89 at BMO Capital
- Hanmi Financial (HAFC) PT Lowered to $18 at DA Davidson
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, DowngradesRelated Entities
Standard & Poor's, Earnings, Wells FargoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
