Gartner (IT) is seeing considerable progress in its efforts to revamp its business and technology insights group for greater client engagement and retention, RBC Capital Markets said in a note Monday.
The conference business showed a notable rebound, underscoring a significant monetization runway ahead, but sales cycles remain elongated as they remain dependent on macroeconomic conditions, according to the note.
The company is exercising pricing discipline, and management is pacing quota-bearing-headcount additions as it prioritizes productivity gains before resuming workforce expansion, RBC said.
On AI funding pressures, the company highlighted that small tech firms represent a small portion of the overall business, and contracts are structured as multiyear deals, mitigating funding risk, the investment firm said.
RBC Capital Markets has a sector perform rating on the stock, with a price target of $198 per share.
Gartner shares were up 3.8% in Tuesday trading.
Price: 215.62, Change: +7.90, Percent Change: +3.80
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