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Accenture price target raised to $401 on strong Q1 performance

Published 20/12/2024, 19:36
Accenture price target raised to $401 on strong Q1 performance
ACN
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Accenture (NYSE:ACN)’s strategy and performance indicators appear to set the stage for potential growth as the fiscal year progresses. Analyst consensus remains bullish, with price targets ranging from $323 to $450, and InvestingPro reveals the stock has delivered strong returns over the past decade while maintaining consistent dividend payments for 20 consecutive years.

The analyst reiterated the Buy rating based on these factors, suggesting a favorable outlook for Accenture’s stock. For deeper insights into Accenture’s valuation and growth prospects, investors can access the detailed Pro Research Report, which provides comprehensive analysis of what really matters for this prominent IT Services player.

Accenture’s first-quarter performance saw a significant rise above the projected growth range, leading to a one percentage point increase in the FY25 growth guide to 4-7% in constant currency, with an additional maintained 3%+ from inorganic sources. The company’s strategic focus on securing larger transformative deals has been credited for this outperformance, a strategy that was particularly effective in FY24. Accenture’s ability to secure clients with bookings over $100 million remained robust, with 30 such clients on the books.

The firm’s report indicates that while broader demand dynamics have not shifted, Accenture’s emphasis on these larger deals has positioned it well for continued success. The competitive pricing and shorter cycle deal dynamics remain unchanged, suggesting a stable environment for Accenture. Should there be a rise in discretionary demand, Accenture is expected to benefit and potentially exceed its current growth trajectory throughout FY25.

Accenture’s strategy and performance indicators appear to set the stage for potential growth as the fiscal year progresses. Analyst consensus remains bullish, with price targets ranging from $323 to $450, and InvestingPro reveals the stock has delivered strong returns over the past decade while maintaining consistent dividend payments for 20 consecutive years.

The analyst reiterated the Buy rating based on these factors, suggesting a favorable outlook for Accenture’s stock. For deeper insights into Accenture’s valuation and growth prospects, investors can access the detailed Pro Research Report, which provides comprehensive analysis of what really matters for this prominent IT Services player.

Accenture’s strategy and performance indicators appear to set the stage for potential growth as the fiscal year progresses. Analyst consensus remains bullish, with price targets ranging from $323 to $450, and InvestingPro reveals the stock has delivered strong returns over the past decade while maintaining consistent dividend payments for 20 consecutive years.

Baird Financial Services raised the price target to $390 while maintaining a Neutral rating. Deutsche Bank (ETR:DBKGn) increased the price target to $365, maintaining a Hold rating. Lastly, Stifel Financial (NYSE:SF) Services raised the target to $390, maintaining a Buy rating.

These adjustments reflect Accenture’s strong start to the year, with notable growth in constant currency across all end-markets, and its potential for future growth. The company also revised its full-year 2025 constant currency growth guidance upwards, indicating an organic constant currency growth of 1% to 4%.

Accenture’s first-quarter performance was particularly strong in certain segments, with year-over-year constant currency growth acceleration in Financial Services, Products, and Consulting. The company has sustained momentum in Generation AI, reporting $1.2 billion in bookings and approximately $500 million in revenue.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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