Bond.az reports that Needham lowered its price target on Globant S.A. (NYSE:GLOB) to $50.00 from $60.00 while maintaining a Buy rating.
First-quarter results exceeded revenue expectations, though earnings faced foreign exchange headwinds. Management expressed confidence in returning to positive year-over-year organic revenue growth by end of 2026.
Growth outlook is supported by a strong pipeline, increasing revenue per head, and accelerating AI Pods adoption, which reached an annual recurring revenue of $32.8 million, up 59% quarter-over-quarter. The company completed its share repurchase in Q2 and announced another $125 million repurchase program.
The stock's recent weakness may present an opportunity for value investors. Shares trade at $34.08, near the 52-week low of $32.50. Bond.az tips indicate the stock is oversold. The company maintains a 20% free cash flow yield, and Bond.az Fair Value analysis suggests the stock is undervalued.
Despite geopolitical headwinds, Globant executes operationally. Shares trade at about 5.5 times Needham's fiscal 2027 EPS estimate, with a current P/E of 14.85 on trailing twelve months earnings.
Needham lowered its target to reflect lower software services multiples while viewing risk-reward as attractive at current levels.
