Grid Dynamics price target raised to $16 from $15 at JPMorgan

JPMorgan analyst Puneet Jain raised the firm’s price target on Grid Dynamics to $16 from $15 and keeps an Overweight rating on the shares. The analyst does not expect major surprises heading into the digital IT earnings prints in the next few weeks. The firm expects softer Q1 guidance than the Street, as clients have yet to finalize full-year 2024 budgets, but foresees greater momentum in the back half of the year than the Street as it expects IT buyers to pursue continued vendor consolidation exercises in legacy areas to free up funds for project-based work that clients paused last year. Tactically, JPMorgan recommends a long Globant (GLOB), short Endava (DAVA) pair trade.