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Investing.com - BMO Capital has reduced its price target on Accenture plc (NYSE:ACN) to $270 from $325 while maintaining a Market Perform rating on the stock. Currently trading at $232.56, near its 52-week low of $234.1, InvestingPro analysis suggests the stock is undervalued, with strong fundamentals including a P/E ratio of 18.44x and steady revenue growth of 6.21%.
The firm noted that Accenture reported solid bookings growth against low investor expectations, and the company’s fiscal year 2026 revenue guidance aligned with BMO’s expectations.
BMO Capital indicated that negative sentiment in IT services persists due to ongoing concerns about potential generative AI headwinds, and Accenture’s performance and guidance are unlikely to change this narrative.
The research firm believes that calendar year 2026 IT services spending will likely remain tepid, while potential headwinds from AI will grow as capabilities improve.
BMO Capital expects these factors will largely keep IT services stocks range-bound, leading to the decision to lower the price target while maintaining the Market Perform rating.
In other recent news, Accenture reported its fourth-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $3.03, which was higher than the forecasted $2.97, representing a 2.02% positive surprise. Additionally, Accenture’s revenue reached $17.6 billion, exceeding the anticipated $17.35 billion. These results demonstrate strong performance in both earnings and revenue for the quarter. Despite the positive financial outcomes, the company’s stock experienced a minor decline in premarket trading. The stock price movement, however, is not the focus of this report. These developments are part of the latest updates surrounding Accenture’s financial performance.
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