Forrester Research Differentiating Itself From Gartner, Could Bump Up Prices Soon

Barrington Research analyst, Vincent Colicchio, has a favorable view on Forrester Research, Inc. FORR due to the potential market opportunities and the actions taken to enhance execution. He did, however, continue to rate the stock at Market Perform citing valuation considerations. The brokerage believes that the company was differentiating itself from Gartner and could bump up prices any time.

The analyst wants to see better momentum in the business that would likely involve better client growth and enrichment. The momentum could also cause a lower valuation before he becomes more proactive on the shares of the company.

The brokerage found that tactical shift continued when the management continued to shift its focus from broad-based technology coverage towards business technology. "Business technology involves digital technologies, which help enterprises win, grow and retain customer relationships. This is helping the company differentiate itself from Gartner (IT: NOT
RATED), its largest competitor, which has broader coverage and greater resources," wrote the analyst to his clients.

Colicchio also found that Forrester Research is narrowing its focus to the management and analysis of data, which is directly related to serving customers. As far as a "sweet spot", the brokerage thinks that verticals are showing the strongest demand for its business technology research/advisory services included financial services, healthcare and retail, which are all experiencing significant change due to digital technologies.

After Gartner boosted its pricing in January, the analyst expects Forrester Research to hike prices in the near future. The analyst pointed out the history suggesting that whenever Gartner increases prices in January, FORR follow suit with a similar move in July.

The stock traded down by 2.03 percent on Tuesday.