Accenture stock maintains Buy rating at UBS following SYSTEMA acquisition

Investing.com - UBS has reiterated its Buy rating and $395.00 price target on Accenture plc (NYSE:ACN), representing a 32% upside from the current price of $299.26, following the company’s acquisition of SYSTEMA, a German software solutions and consulting services provider. According to InvestingPro data, Accenture maintains a GOOD financial health score and commands a substantial $187.38B market capitalization.

The acquisition strengthens Accenture’s capabilities in manufacturing automation, particularly for semiconductor manufacturers and other high-tech industries, according to UBS.

SYSTEMA specializes in software solutions and consulting services focused on manufacturing automation, which aligns with Accenture’s strategy to enhance its offerings and human capital through targeted acquisitions.

Financial terms of the transaction were not disclosed, but UBS believes the deal is consistent with Accenture’s established acquisition strategy.

The acquisition represents another step in Accenture’s inorganic growth approach, which focuses on expanding its service capabilities and technical expertise to better serve clients in specialized industries.

In other recent news, Palantir Technologies (NASDAQ:PLTR) has announced a strategic partnership with Accenture Federal Services. This collaboration aims to implement AI-powered solutions for U.S. federal government clients, focusing on enhancing decision-making and operational resilience. Accenture Federal Services will train 1,000 Data & AI professionals on Palantir’s platforms to support this initiative. Meanwhile, Accenture has faced mixed reactions despite positive earnings results. UBS maintained a buy rating, citing growth in generative AI bookings, while TD Cowen adjusted its price target due to light bookings and fiscal challenges. Stifel reiterated a buy rating, noting organic growth and stability in consulting and outsourcing segments. William Blair also maintained an outperform rating, highlighting Accenture’s global scale and AI capabilities. These developments reflect ongoing momentum and challenges in the technology and consulting sectors.

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