Accenture stock holds Buy rating at Stifel amid AI transition challenges

Investing.com - Stifel maintained its Buy rating on Accenture plc (NYSE:ACN) with a price target of $315.00 as the company navigates headwinds from artificial intelligence transition and macroeconomic factors. Currently trading at $239.38, near its 52-week low, the IT services giant maintains strong fundamentals with a market cap of $148.3 billion. InvestingPro data reveals the stock has historically demonstrated low price volatility, making it an interesting watch for stability-focused investors.

The firm noted that Accenture’s fiscal year 2026 organic revenue growth guidance of approximately 2% falls about 350 basis points below its pre-pandemic trend, or 200 basis points below trend when excluding DOGE-related headwinds.

Stifel identified two key challenges affecting Accenture: ongoing macroeconomic factors that aren’t expected to improve near-term and the cost and complexity associated with AI transformation, though these pressures should diminish over time.

The research firm examined three previous major technological transitions that posed existential threats amid macroeconomic uncertainty, observing that while initial revenue volatility occurred, recovery typically followed within 12-24 months.

Despite acknowledging investor hesitation until consulting bookings reaccelerate, Stifel highlighted Accenture’s current valuation of 17 times earnings with a 2.7% dividend yield as "compelling value for longer-term investors."

In other recent news, Accenture has announced the acquisition of Decho, a UK-based AI consultancy specializing in Palantir solutions. This acquisition adds over 40 specialist engineers to Accenture’s Data and AI organization in the UK, enhancing its capabilities in Palantir platforms. Additionally, Accenture and Google Cloud have expanded their strategic alliance to offer Gemini Enterprise agentic AI solutions, which will help clients across various industries scale and manage multi-agent systems. In leadership changes, Matt Prebble has been appointed to lead Accenture’s UK, Ireland & Africa operations, while Shaheen Sayed takes on the role of Chief Commercial Officer of Reinvention Services.

On the analyst front, UBS has maintained a Buy rating on Accenture, with a price target of $315, citing potential benefits from easing federal and AI concerns. In contrast, Jefferies has lowered its price target for Accenture to $250, maintaining a Hold rating, due to the company’s ongoing restructuring efforts related to its AI-focused strategy. These recent developments reflect Accenture’s strategic moves in AI and leadership, as well as differing analyst perspectives on the company’s future performance.

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