Barclays Maintains an 'Overweight' on Gartner (IT); Solid 1Q'11, Given Seasonally the Weakest; Pullback Creates an Opportunity
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Price: $195.90 +1.15%
Rating Summary:
8 Buy, 13 Hold, 3 Sell
Rating Trend:
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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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Barclays maintains an 'Overweight' on Gartner (NYSE: IT), PT $50.
Barclays analyst says, "Pullback Creates an Opportunity: Despite a better-than-expected quarter, in our view, IT traded down -8.5% (vs. S&P500 -0.9%), which creates an opportunity for investors (and management) to buy back shares. Points that might have been misinterpreted are: 1) Revenues: IT reported total revenues of $330M (+11% y/y), beating our $327M estimate but short of consensus' $334M; 2) Research Contract Value grew 14% y/y in 1Q11, which while a deceleration from 4Q (the strongest quarter for bookings) importantly grew q/q (albeit modestly); and 3) Cash Flow in 1Q is also seasonally the lowest due to bonus and commission payments."
"We continue to like IT for its 1) LT organic growth potential in a large addressable market ($45B+); and 2) its subscription driven strong FCF (150%+ of net income)."
For more ratings news on Gartner click here and for the rating history of Gartner click here.
Shares of Gartner closed at $38.49 yesterday.
Barclays analyst says, "Pullback Creates an Opportunity: Despite a better-than-expected quarter, in our view, IT traded down -8.5% (vs. S&P500 -0.9%), which creates an opportunity for investors (and management) to buy back shares. Points that might have been misinterpreted are: 1) Revenues: IT reported total revenues of $330M (+11% y/y), beating our $327M estimate but short of consensus' $334M; 2) Research Contract Value grew 14% y/y in 1Q11, which while a deceleration from 4Q (the strongest quarter for bookings) importantly grew q/q (albeit modestly); and 3) Cash Flow in 1Q is also seasonally the lowest due to bonus and commission payments."
"We continue to like IT for its 1) LT organic growth potential in a large addressable market ($45B+); and 2) its subscription driven strong FCF (150%+ of net income)."
For more ratings news on Gartner click here and for the rating history of Gartner click here.
Shares of Gartner closed at $38.49 yesterday.
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