BMO Capital Reduces PT on Gartner (IT) Stock

Gartner, Inc. (NYSE:IT) is one of the Oversold Fundamentally Strong Stocks to Buy Now. On August 6 BMO Capital analyst Jeffrey Silber reduced the price objective on the company’s stock to $272 from $409, while keeping a “Market Perform” rating, as reported by The Fly. As per the analyst, Gartner, Inc. (NYSE:IT) posted a slight margin-driven beat, but its Contract Value growth slowed considering the federal government pressure as well as tariff-impacted industries.

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Gartner, Inc. (NYSE:IT) continues to make adaptations to ramp up its performance going forward. With the US federal government, the company is ensuring to stay aligned with the changing priorities, especially improving efficiency. With the changing tariff, the number of clients that are interested in cost optimization increased dramatically. Gartner, Inc. (NYSE:IT) has expanded its capabilities, such as certifying the client-facing associates on delivering such services.

Furthermore, the company has been making adaptations in sales and services to ramp up growth. Gartner, Inc. (NYSE:IT) rolled out a new program to better equip client-facing associates with comprehensive knowledge on the hot topics, such as AI and cost optimization. Gartner, Inc. (NYSE:IT) expects these and other adaptations to help it get back to the double-digit growth.

Madison Investments, an investment advisor, released its Q2 2025 investor letter. Here is what the fund said:

“We initiated positions in Airbnb, CDW Corporation and Gartner, Inc. (NYSE:IT) and sold Berkshire Hathaway. The final new investment during the second quarter was in Gartner, a global leader in technology research. The company has an attractive business model characterized by recurring revenues, strong pricing power, negative working capital and high return on invested capital. The firm maintains a strong competitive advantage from its renowned brand as well as its unmatched scale and resulting ‘information network.’ We believe the company’s long-term growth outlook is excellent due to the increasing need for sophisticated technology research, coupled with Gartner’s small share of its addressable market. The stock has underperformed recently on concerns over slowing subscription growth, which we believe will prove to be short-lived. The currently depressed valuation was too attractive to pass up.”

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Disclosure: None. This article is originally published at Insider Monkey.