Globant initiated with a Hold at Deutsche Bank

Deutsche Bank initiated coverage of Globant with a Hold rating and $210 price target. The firm noted that Globant has maintained “strong, double-digit organic growth as the company has continued its strong execution and taken market share due to its technology leadership position.” However, Deutsche Bank remains cautious on the demand pressures in the IT Services industry and believes “GenAI will have little positive impact over the near/medium term,” and as such, initiated Globant with a Hold rating and $210 price target, or ~28x the firm’s CY25 EPS, which the firm sees as a “healthy premium to the IT Services peer group.”