UPDATE - Barclays Initiates Coverage on Gartner (IT) with an Overweight; Strong Business Models Warrant High Valuations
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Price: $196.28 +1.34%
Rating Summary:
8 Buy, 13 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
8 Buy, 13 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - Barclays initiates coverage on Gartner (NYSE: IT) with an Overweight. PT $50.
Barclays analyst said, "IT and IHS Inc (NYSE: IHS) share the following attractive investment attributes: 1) strong market positioning (brands, leading market share, mission critical data); 2) large addressable markets (technology, energy); 3) highly predictable and recurring revenue (70%+ subscription revenue, 80%+ renewal rates) 4) strong free cash flow generation (150%+ of net income at both) that results from the subscription model; 5) attractive margins and ROIC; and 6) strong management teams."
"We prefer IT to IHS for four primary reasons: 1) higher comfort with IT's addressable market and organic growth potential; 2) better ROIC (25%+ vs. 10%+); 3) cheaper valuation; and 4) IHS being more acquisitive, faces higher M&A deal and integration risks, in addition to implementation risks from a new ERP system in the short term."
To see all upgrades/downgrades on shares of IT, visit our Analyst Ratings page.
Barclays analyst said, "IT and IHS Inc (NYSE: IHS) share the following attractive investment attributes: 1) strong market positioning (brands, leading market share, mission critical data); 2) large addressable markets (technology, energy); 3) highly predictable and recurring revenue (70%+ subscription revenue, 80%+ renewal rates) 4) strong free cash flow generation (150%+ of net income at both) that results from the subscription model; 5) attractive margins and ROIC; and 6) strong management teams."
"We prefer IT to IHS for four primary reasons: 1) higher comfort with IT's addressable market and organic growth potential; 2) better ROIC (25%+ vs. 10%+); 3) cheaper valuation; and 4) IHS being more acquisitive, faces higher M&A deal and integration risks, in addition to implementation risks from a new ERP system in the short term."
To see all upgrades/downgrades on shares of IT, visit our Analyst Ratings page.
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