On Sep 27, major Wall Street analysts update their ratings for $Accenture (ACN.US)$, with price targets ranging from $350 to $395.
Goldman Sachs analyst James Schneider maintains with a hold rating, and adjusts the target price from $335 to $370.
BofA Securities analyst Jason Kupferberg maintains with a buy rating, and sets the target price at $388.
Barclays analyst Ramsey El Assal maintains with a buy rating, and maintains the target price at $350.
Guggenheim analyst Jonathan Lee CFA maintains with a buy rating.
BMO Capital analyst Keith Bachman maintains with a hold rating, and adjusts the target price from $380 to $390.
Furthermore, according to the comprehensive report, the opinions of $Accenture (ACN.US)$'s main analysts recently are as follows:
The stock is anticipated to experience an expansion in its multiple as the advent of Gen AI is expected to drive revenue growth in conjunction with ongoing capital return.
The key insights from Accenture's earnings discussion highlighted that the upper range of the FY25 constant currency revenue growth forecast between 3%-6% does not count on any uptick in discretionary spending. Conversely, the lower end has room to absorb a potential decline. It is believed that investors will value the understated nature of this early FY25 projection. Additionally, a comparison to the previous year shows a rise in the volume of substantial transformational contracts currently in backlog, which bolsters visibility.
Ongoing momentum within the Health & Public Service sector has bolstered management's confidence in achieving the upper boundary of the company's projected 0-3% year-over-year constant currency organic growth. This has resulted in a more optimistic narrative regarding the company's organic growth prospects for FY25.
Accenture's robust Q4 earnings surpassed expectations, attributed to the recognition of revenue from larger projects initiated in previous periods, which has significantly propelled sequential growth, especially within the Strategy & Consulting segment. Furthermore, a substantial increase was observed in gen-AI bookings for FY24, reaching over $3 billion, with corresponding revenues escalating to $900 million, compared to $300 million and $100 million in FY23.
The assessment reflects that Accenture's valuation is considered balanced in light of constrained organic growth, yet acknowledges the company's robust bookings. The projection for fiscal year 2025 is in line with general expectations, with the revenue outlook for 2024 slightly surpassing the consensus. Additionally, the company saw strong performance in Managed Services bookings and a modest enhancement in GenAI bookings.
Here are the latest investment ratings and price targets for $Accenture (ACN.US)$ from 11 analysts:
Note:
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