GLOB Globant S.A.

Morgan Stanley highlighted Latin American tech stocks showing resilience through strong operations, recurring revenue, AI adoption and sustainable growth. Totvs: Morgan Stanley maintains an Overweight rating, citing 15% recurring-revenue growth and a 25% adjusted EBITDA margin. AI-enabling products reached 19.4% of management recurring revenue, up 140 bps YTD, while ERP remains a resilient technology spending category in Brazil. Q2 revenue beat estimates, with gross ARR additions up 28% and adjusted EBITDA up 22%. Morgan Stanley cut its price target to BRL51 from BRL53 due to higher Brazilian rates. Globant: Trading at about a 30% discount to peers, Globant expects at least $110 million in AI-native ARR by year-end, 38% above its previous outlook. New business represents 18% of 2026 revenue, while free-cash-flow margin reached 11%. However, Q2 adjusted EPS missed consensus and full-year guidance was below expectations, leading several firms to lower ratings or price targets. $GLOB $MS