03:27 PM EDT, 07/12/2024 (MT Newswires) -- Globant ( GLOB ) is expected to pose "constructive" Q2 earnings supported by positive news on different regions and business verticals, while the company's full-year forecast will likely be reaffirmed, UBS BB said in an earnings preview emailed Friday.

UBS estimates Globant's ( GLOB ) Q2 revenue to grow 18% from a year earlier and rise 3% quarter over quarter.

UBS expects to see revenue growth in the Middle East this year and in Europe in 2024 through 2025. It also forecasts strong business verticals, such as travel and hospitality, to sustain their position, and weaker verticals to stop declining, according to the note.

"While we now expect revenue to reach the low end of the guidance in FY2024, we think the main message is higher conviction and a potential guidance reiteration," UBS said.

Globant's ( GLOB ) stability contrasts with peers that have lowered their forecasts, potentially positioning it favorably as "downsides on 2024 guidance are de-risked and the market could focus on the upsides of the story," UBS said.

The investment firm reduced the price target on Globant ( GLOB ) to $225 from $230 and reiterated its buy rating.

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