In the recent frenzy of trading, shares of Gartner Inc (Symbol: IT) have triumphantly soared past the average analyst’s 12-month target price of $453.67, elegantly settling at $453.81/share. When a stock reaches this coveted target, analysts seem to espy two potential pathways: to downgrade on valuation or, alternatively, to gracefully revise the target price to an even loftier level. The reaction of these astute analysts may also hinge upon the fundamental business developments propelling the stock price skyward — if the company’s prospects are gleaming, perhaps it’s time for the bulls to hoist the target price even higher.
Within the Zacks coverage universe, there are 9 diverse analyst targets contributing to this target average for Gartner Inc. Yet, it’s important to remember that averages are just that — a numerical abstraction. Some analysts have set their sights lower, with one holding out for a modest $400.00, while others have aimed for the stars with a soaring projection of $550.00. The standard deviation and room for fluctuation stands at $45.814, offering a glimpse into the diversity of professional opinion.
The essence of examining this average IT price goal is to tap into the “wisdom of crowds” notion, amalgamating the myriad viewpoints that culminate in this number, as opposed to relying solely on individual expertise. With IT ascendant above the specified average target price of $453.67/share, investors have been granted a clear indication to reevaluate the company and question whether $453.67 marks merely a rest stop en route to an even loftier target, or whether the valuation has stretched to a point necessitating consideration of withdrawing some chips from the table. Below is a table detailing the current assessments of the analysts covering Gartner Inc:
| Recent IT Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 5 | 5 | 5 | 5 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 5 | 5 | 5 | 5 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.0 | 2.0 | 2.0 | 2.0 |
The average rating presented in the above table ranges from 1 to 5, where 1 denotes a Strong Buy and 5 signifies a Strong Sell. The data used in this article is derived from Zacks Investment Research via Quandl.com. For the latest Zacks research report on IT — it’s on the house.
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The perspectives shared in this piece are those of the author and do not necessarily mirror those of Nasdaq, Inc.
