Globant Earnings: Shares Trade Lower on Conservative Fiscal 2024 Outlook; Shares Fairly Valued

Narrow-moat Globant reported fourth-quarter 2023 results that were broadly in line with FactSet consensus. However, guidance for fiscal 2024 was below our forecast and FactSet consensus, which we think caused the shares to close down around 6% on Feb. 16. Weaker-than-expected guidance is due to limited visibility into the second half of fiscal 2024, despite a positive improvement in business conditions. We don’t expect to make a material change to our $201 fair value estimate. At current levels, the shares look fairly valued given the company’s High Morningstar Uncertainty Rating.