Needham starts Globant with Buy on ‘best-in-breed’ organic growth

Needham initiated coverage of Globant with a Buy rating and $205 price target. Globant is a provider of digital transformation services to Global 2000 firms that operate across a variety of industries including financial services, media and entertainment, professional services, and healthcare, the analyst tells investors in a research note. The firm believes the company’s focus on high-end digital services should allow it to generate "best-in-breed" organic growth while maintaining an attractive margin profile. This supports the stock’s premium valuation to the broader group, contends Needham.