JP Morgan Comments on 2Q results at Gartner

J.P. Morgan has published a report on Gartner IT reviewing 2Q results for the information technology advisory company. In the report, J.P. Morgan wrote, "EPS of $0.34 (+42%) beat J.P. Morgan's $0.32 and consensus' $0.31. (That excludes $0.02 of integration costs related to the Burton and AMR acquisitions.) Revenues (+11% ex currency) were slightly light of our estimate due to softness at the Consulting business. EBITDA (+27%) beat our estimate. Research Contract Value rose 16% ex currency (v. +14% in Q1), the fastest rate since Q1,07. The core Research and Events segments are accelerating, while Consulting continues to lag. Gartner remains confident in a recovery in the Consulting business due to the growing backlog. Management lifted 2011 revenue guidance (entirely to currency)---we also think there is some conservatism built in. We continue to like Gartner's cash generation, sizable market opportunity and dominant competitive position. We think the velocity of change in the tech industry should continue to provide a tailwind in the near-term." J.P. Morgan rated Gartner an Overweight with a price target of $42.00. Gartner closed Tuesday at $37.48.