J.P. Morgan Raises PT on Gartner to $43 (IT)

J.P. Morgan is out with its report on Gartner IT, raising its PT from $35 to $43. In a note to clients, J.P. Morgan writes, "We are reiterating our Overweight rating on Gartner shares following Q4,10 results. EPS of $0.39 (+41%) beat J.P. Morgan's $0.37 and consensus $0.38. (That excludes $0.02 of integration costs related to the Burton and AMR acquisitions.) Contract value rose 14% organic, ex currency v. +11% in Q3, +8% in Q2 and +3% in Q1. Management is seeing “very good demand” and “shorter sales cycles.” In our view, Gartner is benefiting from a resurgence in IT spending and a more compelling value proposition given the speed of change in the industry. We believe Gartner's relative competitive position and market opportunity in the technology Research niche, stands apart from many companies in the info service universe. Our price target moves to $43." Shares of IT closed Tuesday at $37.99.