Globant slips even as Wells Fargo starts with Equal-Weight rating

[Globant glass building with blue sky in the background]
Arturo Rosenow

* Globant (NYSE:GLOB [https://seekingalpha.com/symbol/GLOB]) shares slipped 0.7% on Wednesday, even as Wells Fargo started coverage on the technology company with an Equal-Weight rating and $61 price target.
* “Likely to remain in near-term penalty box following disappointing execution in recent quarters,” analyst Jason Kupferberg wrote in a note to clients. “Latam-centric service delivery is a differentiator, but organic growth likely to get worse before it gets better.”
* Delving deeper, Kupferberg said that Globant has seen “seen meaningful demand softness across multiple verticals,” and the demand issues, along with concerns in Latin America, are not likely to resolve any time soon.
* “We believe GLOB has reasonable visibility on the revised '25 guide, but shares are unlikely to rally materially until quarterly execution recovers and estimates start moving steadily higher again,” Kupferberg added. “Pivot from growth to a margin/capital return story could be tough. Amid the weak revenue backdrop, GLOB is retrenching and focusing more on margin expansion, FCF, and capital return.”

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