UBS Downgrades Gartner, Cuts Price Target to $270, Citing Significant Q2 Miss.

UBS downgraded Gartner to Neutral from Buy and cut its price target to $270 from $480 due to a significant miss in Q2 contract value growth. The firm reduced its CV growth trajectory, forecasting a 2.5% growth rate for 2025 and 3% for 2026, citing broader cuts in discretionary enterprise spending rather than AI disruption. The stock appears inexpensive on 2026 multiples but has limited near-term upside as growth decelerates through Q4.

UBS has downgraded Gartner Inc. (NYSE: IT) to Neutral from Buy, slashing its price target from $480 to $270. The move follows a significant miss in the company's second-quarter contract value (CV) growth, which saw an increase of just $8 million, far below UBS's $59 million estimate. This miss led to a 100 basis point cut in the CV growth trajectory.

UBS now forecasts Gartner's CV growth rate to exit 2025 at 2.5%, down from its previous estimate of 5.1%, and has trimmed its 2026 organic growth forecast to 3% from 6%. The firm attributes the softness to broader cuts in discretionary enterprise spending rather than AI disruption, warning that a recovery may take time. Despite the stock appearing inexpensive on 2026 multiples (12x EBITDA and 16x free cash flow), UBS sees limited near-term upside as growth continues to decelerate through the fourth quarter.

References:
1. [Investing.com](https://www.investing.com/news/stock-market-news/ubs-downgrades-gartner-after-large-q2-miss-slashes-price-target-4174001)
2. [Investing.com](https://www.investing.com/news/analyst-ratings/ubs-downgrades-gartner-stock-to-neutral-on-slowing-contract-value-growth-93CH-4172115)
3. [Investing.com](https://ng.investing.com/news/stock-market-news/ubs-downgrades-gartner-after-large-q2-miss-slashes-price-target-2047391)