UPDATE: FBR Capital Markets Initiates Coverage on Gartner with Market Perform Rating, $67 PT on Market Leader Position with Headroom for Growth

In a report published Thursday, FBR Capital Markets analyst William Bird initiated coverage on

with a Market Perform rating and $67.00 price target. In the report, FBR Capital Markets noted, “We are initiating coverage of Gartner, Inc. (IT) with a Market Perform rating and a 12-month price target of $67 per share. In our view, Gartner is an outlier: a well-managed, durable market leader with a low share of a large addressable market, high incremental margins, and attractive FCF characteristics. However, our two-stage growth model suggests that the stock trades around fair value. With contract value growth throttling below 15% for eight consecutive quarters, we see some risk that the company's 20%–25% long-term EPS growth goal could drift lower.” Gartner closed on Wednesday at $64.57.