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Stifel maintained its Buy rating and $355.00 price target on Accenture plc (NYSE:ACN) ahead of the company’s upcoming fiscal third-quarter results, due in 8 days. Currently trading at $319.22, InvestingPro analysis suggests the stock is fairly valued, with analyst targets ranging from $280 to $395. The firm expects Accenture to deliver results in line with expectations despite ongoing market challenges.
Accenture modestly increased its fiscal year 2025 guidance when it reported second-quarter results in late March. The company now projects 5-7% nominal revenue growth and 3% organic growth for the full year, with second-half organic growth expected at approximately 2% compared to 4% in the first half. This guidance aligns with the company’s strong financial health, reflected in its "GOOD" overall rating on InvestingPro, which offers detailed analysis of 1,400+ US stocks through comprehensive Pro Research Reports.
The consulting giant’s guidance appears "appropriately risk-adjusted," according to Stifel, with the high end assuming unchanged macroeconomic conditions and the low end factoring in potential market deterioration. A weaker U.S. dollar has been reflected in updated models, though with only nominal earnings-per-share impact of less than 2%.
Acquisition activity has increased sequentially, though acquired headcount for the third quarter and fiscal year to date remains significantly lower year-over-year. Stifel does not expect Accenture to provide commentary beyond the fourth quarter or meaningful changes to fiscal year 2026 consensus estimates, which currently project 7% earnings growth.
In artificial intelligence, Accenture is expected to report positive bookings and revenue commentary, albeit from a small base, while pricing commentary will likely reflect the deflationary impact of generative AI and weaker overall demand. As a prominent player in the IT Services industry with a market cap of $199.8 billion, the company maintains strong profitability with a 32.2% gross margin and 27% return on equity.
In other recent news, Accenture has expanded its AI Refinery platform in Europe, introducing new sovereign capabilities to help organizations maintain control over critical data while implementing AI solutions. This expansion is expected to address growing concerns about data sovereignty, particularly in sectors like energy and telecommunications. Meanwhile, Accenture has announced an investment in Reserv, a firm specializing in AI-driven insurance claims processing. This partnership aims to enhance efficiency in claims handling and expand Reserv’s business model to include integration services for global carriers.
Additionally, Accenture has appointed Ndidi Oteh as the new CEO of Accenture Song, effective September 1, 2025. Oteh will succeed David Droga, who will transition to a strategic role within the company. In analyst updates, Morgan Stanley (NYSE:MS) has lowered its price target for Accenture to $340, maintaining an Equalweight rating, while TD Cowen reaffirmed its Buy rating with a target of $336. These ratings reflect mixed expectations about Accenture’s growth prospects amid broader industry concerns. Investors are closely monitoring how the company navigates these challenges and adapts to evolving market conditions.
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