William Blair analyst Andrew Nicholas has maintained their bullish stance on IT stock, giving a Buy rating today.
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Andrew Nicholas has given his Buy rating due to a combination of factors, including Gartner’s strong financial performance and strategic initiatives. The company’s revenue exceeded expectations, driven by growth in the Insights and Other segments, despite some weakness in Consulting. This revenue increase, coupled with effective cost management, resulted in significant beats in adjusted EBITDA, EBITDA margin, and EPS compared to both internal models and market expectations.
Furthermore, Gartner’s upward revision of its full-year revenue guidance reflects an optimistic outlook, particularly in the Insights and Conferences segments. The company’s aggressive share repurchase strategy, which saw about 5% of shares bought back in the third quarter, also supports the Buy rating. While CV growth was in line with expectations, the growth excluding the U.S. federal government business was notably stronger, suggesting underlying business strength. These factors, combined with the potential for high-single-digit-plus CV growth in the future, underpin Nicholas’s positive outlook on the stock.