Canaccord has commenced its coverage of Globant (GLOB, Financial) with a Hold recommendation, setting the price target at $97, a reduction from the prior $165. According to the firm's analysis, they anticipate a resurgence to mid-single-digit organic growth by 2026, accompanied by continuous EBITDA margins exceeding 20%. The evaluation highlights Globant's robust platform, which is well-positioned to thrive in an AI-driven environment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Globant SA (GLOB, Financial) is $146.34 with a high estimate of $256.00 and a low estimate of $114.00. The average target implies an upside of 64.61% from the current price of $88.90. More detailed estimate data can be found on the Globant SA (GLOB) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Globant SA's (GLOB, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Globant SA (GLOB, Financial) in one year is $234.61, suggesting a upside of 163.9% from the current price of $88.9. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Globant SA (GLOB) Summary page.
GLOB Key Business Developments
Release Date: May 15, 2025
- Revenue: $611.1 million, representing a 7% increase year-over-year and 8.6% in constant currency.
- Adjusted Gross Margin: 38%, flat year-over-year.
- Adjusted Operating Margin: 14.8% for the quarter.
- Adjusted Net Income: $67.8 million.
- Adjusted Diluted EPS: $1.50 for the quarter.
- Cash and Cash Equivalents: $120.2 million.
- Net Debt: $167 million.
- Free Cash Flow: Consumed $5.7 million in the first quarter.
- Revenue Guidance for Q2 2025: At least $612 million, 4.2% year-over-year growth.
- Full Year 2025 Revenue Guidance: At least $2.464 billion, 2% year-over-year growth.
- Adjusted Operating Margin Guidance: At least 15% for both Q2 and full year 2025.
- Adjusted Diluted EPS Guidance for Q2 2025: At least $1.52.
- Adjusted Diluted EPS Guidance for Full Year 2025: At least $6.10.
- Utilization Rate: 78.2% in Q1 2025.
- Adjusted SG&A as a Percentage of Sales: 18.3% in Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Globant SA (GLOB, Financial) reported a solid quarter with revenues reaching $611.1 million, representing an 8.6% year-over-year growth in constant currency.
- The company has a robust pipeline with a 20% increase over the last year, indicating strong future growth potential.
- Globant SA (GLOB) is well-positioned in the AI market, which is expected to reach $4.3 trillion by 2035, due to its 10 years of strategic investment in artificial intelligence.
- The company has introduced a new AI-powered subscription model, which offers a flexible, transparent way to collaborate with clients and aligns incentives around outcomes.
- Globant SA (GLOB) has seen strong growth in new markets, particularly in the Middle East, APAC, and Europe, with new markets posting an 84.4% year-over-year growth.
Negative Points
- The company's Q1 performance came in below initial expectations, and the revised annual guidance aligns more closely with broader industry events.
- Globant SA (GLOB) is operating in a challenging macroeconomic environment, with a significant probability of a recession in the US and softened consumer spending.
- There has been a slower pace of pipeline conversion in the US, and growth in some Latin American countries has been lower than expected.
- The company experienced a challenging performance in Latin America, with revenues down close to 9% year-over-year, particularly in Mexico and Brazil.
- Adjusted operating margin for the quarter was 14.8%, falling short of expectations due to lower-than-expected revenues.
