Globant downgraded to Neutral at Goldman following miss and lower report

As previously reported, Goldman Sachs downgraded Globant (GLOB) to Neutral from Buy with a price target of $120, down from $225, following Q1 results and guidance that were “significantly weaker than expected.” Management noted that it believes its revised guidance is relatively de-risked, and assumes no significant improvement from current demand levels, but the firm believes the stock is unlikely to warrant a premium valuation in the near term given that Globant’s growth outlook is “at best” in line with peers, the analyst tells investors. The firm cut its 2025, 2026 and 2027 EPS estimates to $6.10, $6.40 and $7.25, respectively, to reflect a significantly lower growth outlook.