Globant upgraded to Buy from Neutral at UBS

UBS upgraded Globant to Buy from Neutral with a price target of $230, down from $240. The firm’s analysis shows signs of demand stabilization, after checks with Globant’s partners and peers. The checks increased conviction in estimates and de-risk the company’s outlook, the analyst tells investors in a research note. UBS says the stock is pricing in an additional 5%-10% of sales downward revisions ahead, implying Globant will miss its guidance, which it says has never happened before. Positive earnings momentum support the Buy thesis, since bookings strength and seasonality should drive growth in the second half of 2024, contends the firm.