11:04 AM EDT, 10/13/2025 (MT Newswires) -- Gartner ( IT ) faces weakening web traffic that could keep contract-value growth soft, Morgan Stanley said Monday in a 3Q preview.

The AlphaWise Contract Value Estimator for Research, a proprietary tracker used by Morgan Stanley, points to about 4% FX-neutral contract-value growth for Gartner ( IT ) in Q3, roughly matching expectations. However, web traffic fell 33% year over year, compared with a 27% decline in Q2, suggesting Gartner's ( IT ) contract value has yet to bottom, the bank said.

Morgan Stanley expects the company to maintain guidance for adjusted earnings before interest, taxes, depreciation, and amortization and earnings per share and flagged that management will likely defend against recent bearish artificial intelligence narratives, but said macro and AI concerns could keep CV growth muted.

The firm trimmed its price target to $307 from $322 following model updates and a mark-to-market of weighted average cost of capital, saying the new target implies roughly 27% upside. Morgan Stanley kept an equal-weight rating on Gartner ( IT ).

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