FINWIRES · TerminalLIVE
FINWIRES

Research Alert: CFRA Maintains Strong Buy Rating On Shares Of Globant S.a.

By

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our price target by $10 to $82, based on 13x our 2026 EPS view, well below GLOB's three-year average (~23x) given industrywide competitive pressure from agentic AI. We lower our 2026 EPS estimate by $0.06 to $6.26 and increase 2027 by $0.04 to $6.76. GLOB continues to lean into agentic AI orchestration, which should help it shake some of the market's fears of extinction for traditional service delivery models. AI Pods grew ARR by 57% Q/Q to $33M in Q1, with GLOB now deploying this model at 40% of its top 20 customers (up from 30% in 2025) and with a "clear path to coverage" at 70% of its top 20, commentary that we think sets it up nicely to exceed its targeted midpoint of $80M in AI Pods ARR by year-end 2026. Q1 brought continued signs of resilience, with Q/Q and Y/Y growth across its top 10, top 5, and top client (Disney, 8.9% of sales) and with GLOB reiterating its full-year guidance midpoints despite elevated uncertainty, an encouraging result after 2025 brought valuation-damaging guidance cuts.

Related Articles

Research

Research Alert: CFRA Lowers Opinion On Shares Of Synchrony Financial To Hold From Buy

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target price by $24 to $79, applying a forward P/E of 7.6x our 2027 EPS estimate, below the peer average of 10.4x given SYF's lower FICO score customer base. We decrease our 2026 adjusted EPS estimate to $9.33 from $9.55 and reduce 2027's to $10.46 from $10.70. We lower our outlook due to concerns about credit quality, as real wage growth has turned negative. While SYF has delivered strong recent performance, with net charge-offs declining Y/Y for four consecutive quarters, we believe this trend may now reverse given SYF's exposure to middle-income consumers and inflation reaching three-year highs. However, two factors provide some offset. First, SYF's retailer share agreements are structured to adjust based on credit performance, meaning the company's costs should decline if credit quality worsens, providing a natural hedge. Second, the recently recaptured Walmart partnership remains a compelling long-term growth driver, and we expect it to become one of SYF's top partnerships.

$SYF
Research

Research Alert: CFRA Lowers Opinion On Shares Of Capital One Financial Corporation To Hold From Buy

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target price by $60 to $205, applying a forward P/E of 8.6x our 2027 EPS estimate, in line with the 10-year historical average of 8.7x. We reduce our 2026 adjusted EPS view to $19.56 from $19.87 and cut our 2027 EPS estimate to $23.74 from $24.46. We lower our outlook on COF primarily due to macroeconomic concerns. The ongoing Middle East conflict is driving inflation above wage growth, pressuring consumer finances. Given COF's significant consumer exposure through its credit card and auto lending businesses, we believe near-term headwinds will largely offset the benefits from its expansion into higher-income segments and operational improvements from the Discover Financial acquisition. Consequently, we now forecast 2026 net charge-offs of approximately 330 bps, up from our previous estimate of 300 bps. Importantly, COF enters this environment from a position of relative strength, with a robust CET1 ratio of 14.4% and a strong allowance coverage ratio of 5.28%.

$COF
Research

Research Alert: CFRA Maintains Hold Rating On Tfx On Q1 Margin Compression

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We cut our target to $110 from $136, 12.5x our 2027 EPS view. We cut our 2026 EPS view to $6.46 from $6.54. We keep our 2027 EPS view at $8.82. We reaffirmed our fundamental outlook for the health care equipment sub-industry for the next 12 months as neutral. While we anticipate continued growth in elective procedures and diagnostics, we see tariffs and rising costs as considerable pressure points on profitability, especially for smaller firms in our coverage. TFX faced severe margin compression in Q1, with adj. gross margin and operating margin declining by 470 bps and 510 bps, respectively. This pressure, led by tariffs, higher logistics costs, the dilutive impact of the Vascular acquisition, and a quality remediation charge for a recall, led to a 3.5% Y/Y decrease in EPS. Compounding these challenges, the key Interventional segment (37% of total) posted modest 3% growth due to disruption from its sales force integration, and we are concerned the supplier recall may lead to elevated backorders in Q2.

$TFX