Goldman Sachs Group Inc. Initiates Coverage on Gartner (IT)
Investment analysts at Goldman Sachs Group Inc. assumed coverage on shares of Gartner (NYSE:IT) in a note issued to investors on Friday, TheFlyOnTheWall.com reports. The firm set a “neutral” rating and a $60.00 price target on the stock. Goldman Sachs Group Inc.’s target price would suggest a potential upside of 2.25% from the stock’s previous close.
The analysts wrote, “We resume coverage of IT with a Neutral rating and a $60, 12-month, EV/EBITDA-based target price for 7% total return, largely in line with the 4% average upside for the group. IT has outperformed for most of the last 5-6 years, including +37%/+4% since Jan 2011/YTD – on sustained above average earnings growth from sales force expansion and success upselling customers. Key positives include (1) top-quartile EBITDA growth; (2) top-quartile returns (driven by low capital requirements) despite bottom-quartile margins (likely from reinvestment in product development and people); and (3) a net cash position and commitment to stock buybacks. We like IT’s business due to a solid competitive position, strong returns and growth drivers that are more visible relative to peer high growth information service companies in our view. However, we remain Neutral because we believe very high growth and margin expansion expectations leave IT virtually ‘priced to perfection’.”
Gartner (NYSE:IT) traded up 0.29% during mid-day trading on Friday, hitting $58.85. 422,699 shares of the company’s stock traded hands. Gartner has a 1-year low of $42.81 and a 1-year high of $63.00. The stock’s 50-day moving average is $58.06 and its 200-day moving average is $57.02. The company has a market cap of $5.482 billion and a price-to-earnings ratio of 32.42.
Gartner (NYSE:IT) last issued its quarterly earnings data on Friday, August 2nd. The company reported $0.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.51 by $0.02. The company had revenue of $446.00 million for the quarter, compared to the consensus estimate of $442.56 million. During the same quarter in the previous year, the company posted $0.43 earnings per share. The company’s revenue for the quarter was up 12.2% on a year-over-year basis. On average, analysts predict that Gartner will post $1.97 earnings per share for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at BMO Capital Markets cut their price target on shares of Gartner (NYSE:IT) from $65.00 to $61.00 in a research note to investors on Tuesday, August 6th. They now have a “market perform” rating on the stock. Analysts at Barclays Capital raised their price target on shares of Gartner (NYSE:IT) from $53.00 to $60.00 in a research note to investors on Tuesday, August 6th.
Four analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average price target of $60.29.
In other Gartner news, SVP Alwyn Dawkins unloaded 3,000 shares of Gartner stock in a transaction dated Wednesday, September 11th. The shares were sold at an average price of $58.32, for a total value of $174,960.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.
Gartner, Inc (NYSE:IT) is an information technology (IT) research and advisory company.
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