Accenture stock price target lowered to $315 by UBS on near-term uncertainty

Investing.com - UBS lowered its price target on Accenture plc (NYSE:ACN) to $315 from $363 while maintaining a Buy rating ahead of the company’s fourth-quarter earnings report. With a market capitalization of $148.5 billion, Accenture currently trades near its 52-week low of $234.10, according to InvestingPro data.

The price target reduction comes as Accenture prepares to report its Q4 FY-Aug-25 results on Thursday, September 25, amid increased market uncertainty reflected in the stock’s implied 7.15% move versus a 4.03% average. InvestingPro analysis suggests the stock is currently undervalued, with multiple ProTips highlighting the company’s strong financial health and consistent dividend history.

UBS noted that investors will focus on Accenture’s 2026 guidance, particularly regarding generative AI revenue (approximately 7% of FY26 estimated revenue), macroeconomic conditions, and federal business (approximately 8% of revenue).

The firm highlighted the pacing of generative AI revenue and bookings, coupled with AI advances driving monetization opportunities and efficiencies, as key areas of focus for investors.

Despite cutting its price target, UBS remains constructive on Accenture’s accelerating revenue and AI optionality, viewing the stock’s 32% year-to-date selloff as an overreaction, with shares trading approximately 25% below their two-year forward P/E average and near their lowest level in 10 years.

In other recent news, Accenture is preparing to announce its fiscal fourth-quarter results, with expectations from Evercore ISI suggesting revenue might align with or slightly exceed the consensus estimate of $17.4 billion, alongside earnings per share of $2.97. Meanwhile, the company is set to acquire the French Orlade Group, enhancing its capital projects capabilities and adding approximately 200 professionals to its team. This acquisition will integrate Orlade’s subsidiaries into Accenture’s infrastructure and capital projects practice.

Analyst firms have adjusted their price targets for Accenture, with Evercore ISI lowering it to $300 and Wolfe Research reducing it to $285, both maintaining an Outperform rating. Guggenheim also cut its price target to $305 while expressing concerns about revenue growth expectations for the company’s fiscal first quarter of 2026. Additionally, recent reports about a proposed $100,000 fee for H-1B visa applications have raised concerns, potentially impacting Accenture and similar companies that rely on this program for staffing. These developments reflect a dynamic period for Accenture as it navigates various financial and operational challenges.

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