5) Gartner, Inc. (NYSE:IT)
Number of hedge fund holders: 35
Gartner, Inc. (NYSE:IT) delivers actionable and objective insight to executives and their teams. It carries out operations via 3 business segments, namely Research, Conferences and Consulting.
Over the medium term, the company’s revenue and earnings growth is expected to be supported by its large global footprint and established customer base. Gartner, Inc. (NYSE:IT) can distribute intellectual property and expertise throughout various platforms and business segments to achieve incremental revenue and profitability.
Gartner, Inc. (NYSE:IT)’s core subscription research businesses are expected to see strong growth in upcoming quarters. For companies evaluating the opportunities and risks of Al on their businesses, Gartner, Inc. (NYSE:IT) is expected to act as a decision support resource. This should help the company achieve volume growth and pricing realization. As a result of revenue growth and focus on cost control, the company should see margin expansion and enhanced FCF generation.
Gartner, Inc. (NYSE:IT) has updated its full-year guidance, with research revenue expected to touch at least $5.105 billion and total FCF expected to be at least $1.08 billion. The company’s research revenues increased by $58.1 million on a YoY basis during 2Q 2024 primarily because of research contract value growth. Also, its EBITDA for 2Q 2024 touched $416 million, reflecting an 8% increase YoY. The company repurchased $340 million of its stock and it now has more than $1 billion in repurchase capacity remaining.
In the second quarter, 35 hedge funds held stakes in Gartner, Inc. (NYSE:IT) totalling $1.11 billion. Analysts at UBS Group initiated the coverage on the shares of Gartner, Inc. (NYSE:IT), and raised their price objective from $510.00 to $580.00. They gave a “Buy” rating on 31st July. Baron Funds, an investment management company, released its first quarter 2024 investor letter. Here is what the fund said about Gartner, Inc. (NYSE:IT):
“Shares of Gartner, Inc. (NYSE:IT), the leading provider of syndicated research to the IT sector, contributed to performance. Fourth quarter financial results were mixed, with declines in net income and EPS. However, solid increases in contract value and strong full-year performance, including a 9% increase in net income and an 11% rise in diluted EPS, helped boost the company’s share price. In addition, a 19% increase in free cash flow for the quarter and 6% for the full year underscored Gartner’s operational efficiency. Gartner’s core subscription research businesses compounded at attractive rates, and we believe growth is poised to accelerate. We think Gartner will emerge as a key decision support resource for every company evaluating the opportunities and risks of AI on its business, providing a tailwind to volume growth and pricing realization. We expect Gartner’s sustained revenue growth and focus on cost control to drive continued margin expansion and enhanced free-cash-flow generation. The company’s balance sheet is in excellent shape and can support aggressive repurchases and bolt-on acquisitions, in our view.”
