Globant's (GLOB) organic growth is expected to improve in 2025 but foreign exchange remains a challenge, UBS said in a note sent Monday.
Contribution to overall growth from mergers and acquisitions will likely decline, the firm added in its Q4 earnings preview for the software development company.
Globant's Q4 2024 results are expected to show a decline in revenue from certain large-scale projects, which will be partially mitigated by higher US revenue, it said. UBS is forecasting revenue growth of 10.5% year-over-year for the quarter and 15.2% growth for full-year 2024, suggesting that topline numbers for the quarter and the year will be at the bottom of guidance ranges.
The investment firm trimmed its price target for the stock to $217 from $222, while maintaining a neutral rating.
"While FX translations should limit USD-growth, we note that GLOB's long exposure to USD helps it to navigate in a volatile FX scenario," UBS said.
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