Globant Gets Consensus Hold from 17 Brokers with $98.7 Target, $125M Buyback
Globant has received a consensus “Hold” rating from 17 analysts, comprising 1 sell, 10 holds, and 6 buys, with an average 1-year price target of $98.67. JPMorgan, Canaccord and UBS have trimmed their targets to $75, $70 and $70 respectively, while the company authorized a $125 million share repurchase.
1. Consensus Rating and Price Target
Seventeen brokerages currently cover Globant S.A., assigning a consensus rating of Hold. Of these, one analyst recommends Sell, ten recommend Hold and six recommend Buy. The average 12-month price target among these firms stands at $98.67, reflecting a balanced outlook on the company’s near-term performance.
2. Recent Analyst Revisions
Since mid-October, several research teams have updated their assessments of Globant. JPMorgan Chase & Co. lowered its target from $78 to $75 and maintained a Neutral rating. Canaccord Genuity cut its target from $80 to $70, assigning a Hold. UBS Group reaffirmed Neutral with a $70 target. Weiss Ratings reiterated a Sell (D+) stance, while Wells Fargo upgraded its view to Hold in an October note.
3. Q3 Results and Guidance
For the quarter ended November 13th, Globant reported earnings of $1.53 per share, missing consensus by $0.02. Revenue reached $617.14 million, slightly above expectations of $615.32 million and up 0.4% year-over-year. Net margin came in at 4.01% and return on equity was 10.39%. The firm’s board set full-year FY2025 EPS guidance at 6.12 and Q4 guidance at 1.53, while analysts forecast 5.73 EPS for the current fiscal year.
4. Share Buyback and Institutional Movements
On October 1st, Globant’s board authorized a $125 million repurchase program, enabling up to 5% of outstanding shares to be bought back. In the second and third quarters, institutional investors significantly increased positions: Invesco added 1.88 million shares (+199.1%), ARGA Investment Management acquired 2.04 million shares (+14,073.7%), Westfield Capital grew by 280,081 shares (+34.1%), Schroder Investment Management by 168,700 shares (+20.1%), and AllianceBernstein by 915,924 shares (+6,875.8%). Institutional ownership now exceeds 91.6%.