Accenture stock could rise on easing federal and AI concerns, UBS says

Investing.com - UBS maintained its Buy rating and $315.00 price target on Accenture plc (NYSE:ACN) Monday, citing potential benefits from "easing federal, tariff, and Gen AI concerns." The stock, currently trading near its 52-week low at $240.68, appears undervalued according to InvestingPro analysis, with analyst targets ranging from $205 to $330.

The global consulting firm released its annual report Monday, detailing its work with U.S. federal government clients delivered through Accenture Federal Services (AFS).

According to the report, federal government work represented approximately 36% of Accenture’s health and public service revenue in the fiscal year ending August 2025.

The federal business accounts for about 15% of Accenture’s Americas revenues and 8% of its total global revenue, according to UBS analysis of the annual report.

UBS believes Accenture is "well positioned in its core business" as it delivers AI, critical cloud, and data services to high-growth companies across its top alliance partnerships. Trading at a P/E ratio of 19.83x, the company has maintained dividend payments for 21 consecutive years, demonstrating consistent financial stability.

In other recent news, Accenture has reported stronger-than-expected fourth-quarter 2025 results and provided fiscal year 2026 guidance that aligns with investor expectations, according to Mizuho. Despite these positive earnings, Mizuho has lowered its price target for Accenture to $309, maintaining an Outperform rating. In addition to financial results, Accenture and Google Cloud have announced an expansion of their strategic alliance to implement Gemini Enterprise AI solutions across various industries. This partnership aims to enhance Accenture’s generative AI capabilities, building on existing collaborations with companies like JCOM and Radisson Hotel Group.

In leadership changes, Matt Prebble has been appointed to lead Accenture’s UK, Ireland, and Africa operations, succeeding Shaheen Sayed. Meanwhile, Jefferies has adjusted its price target for Accenture to $250, maintaining a Hold rating due to the company’s ongoing restructuring efforts around its AI strategy. TD Cowen has reiterated a Buy rating for Accenture, with a price target of $295, highlighting consistent demand dynamics and the adoption of generative AI in the company’s operations. These developments reflect Accenture’s strategic focus on artificial intelligence and its impact on the company’s business trajectory.

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