Globant S.A. (GLOB) PT Lowered to $242 at JPMorgan

JPMorgan analyst Tien-tsin Huang lowered the price target on Globant S.A. (NYSE: GLOB) to $242.00 (from $248.00) while maintaining a Overweight rating.

The analyst comments "GLOB’s 4Q24 came roughly in-line (adjusted for adverse FX), while outlook was mixed with 2025 margin and earnings guidance meeting/exceeding expectations, but 2025 revenue outlook missing which should deservedly weigh on stock sentiment. Specifically, 2025 sales guidance of $2,635-2,705M implies ~10% FXN org y/y growth at the midpoint, still significantly faster than peers EPAM and DAVA, but lacking in y/y improvement that bulls hoped for. Management cited similar visibility into the full year guide as last year, as the size of the pipeline has grown a lot, but GLOB has yet to accelerate pipeline conversion and delivery. The low-end of the guide assumes deterioration in LatAm, while the upper end implies acceleration in US market and deals related to AI, where GLOB has seen many small deals but few large deals thus far. The stock is indicating down double digit which would imply a 10% discount to ACN on our NTM estimates (vs. GLOB trading at a slight premium over the last year), and create upside potential should discretionary spend improve from here. We reduce our PT from $248 to $242, but maintain OW rating given premium growth."

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