UBS Sees Stabilization for Globant in 2026, Raises Price Target Amid Mixed Outlook
In a note to clients this week, UBS analysts adjusted their outlook on Globant S.A. (NYSE:GLOB), raising the 12-month price target to $75 from $70 while maintaining a Neutral rating. The move comes as the firm anticipates the IT services market to find a steadier footing in 2026, though a significant rebound is not yet in sight.
The bank expects Globant to report Q4 2025 revenue of approximately $607 million, a 6% year-over-year decline but slightly above the company's own guidance. Pressure from foreign exchange volatility is projected to trim adjusted gross margin to 37.8%. However, operational efficiency is seen driving the adjusted EBIT margin to 15.3%, exceeding the company's target.
"The forecast for 1.6% growth in 2026 suggests the sector's downturn is bottoming out," said market analyst Eleanor Vance. "It's a stabilization story, not a recovery one. The real test will be how effectively Globant leverages its new partnerships with clients like Riot Games and YPF to reignite growth."
Globant, which specializes in helping enterprises navigate digital and cognitive transformation, has been cited by several funds as a long-term play on the continued demand for "digitally-native" solutions, even amid broader tech spending caution.
The UBS assessment struck a cautious chord with some observers. Marcus Thorne, a portfolio manager, offered a more critical take: "A raised price target with a Neutral rating is the definition of damning with faint praise. They're essentially saying the stock isn't a falling knife anymore, but where's the catalyst? A paltry 1.6% growth forecast for next year is hardly a rallying cry for investors."
Conversely, Priya Sharma, a tech sector strategist, highlighted the resilience factor: "In this environment, stability is an achievement. Hitting EBIT targets despite forex and revenue challenges shows disciplined execution. For patient capital, that's a solid foundation."
The report underscores a broader market sentiment that while the worst may be over for IT services, the path to robust growth remains unclear, putting a premium on companies that can demonstrate operational control and secure strategic client wins.