Street Calls of the Week
Investing.com - TD Cowen has reiterated its Buy rating on Accenture plc (NYSE:ACN) with a price target of $295.00, following meetings with the company’s CEO, CFO, and investor relations team. The stock, currently trading at $239.21 and near its 52-week low, appears undervalued according to InvestingPro analysis.
The research firm noted that Accenture’s management conveyed consistent demand dynamics during these discussions, while providing additional details about generative AI adoption across the company’s operations.
TD Cowen highlighted that the meetings also covered Accenture’s optimization and talent strategy, which aims to broaden the company’s market opportunity in the evolving technology landscape.
According to the analyst report, the consensus reset following Accenture’s fourth-quarter fiscal year 2025 results has "cleaned the slate" on estimates, which could support a potential recovery in the stock.
The firm acknowledged that investor urgency remains limited as the debate around generative AI lacks meaningful evidence amid its nascent adoption, with the technology’s impact still being evaluated on both sides of the argument.
In other recent news, Accenture reported stronger-than-expected fourth-quarter 2025 results and provided fiscal year 2026 guidance, which Mizuho described as "relatively in-line with investor expectations." Despite these positive earnings, Mizuho lowered its price target for Accenture to $309, maintaining an Outperform rating. Similarly, RBC Capital reduced its price target to $285, citing mixed guidance as a factor in their decision while still holding an Outperform rating. TD Cowen also adjusted their price target to $295, mentioning challenges such as consulting business-to-business issues and gross margin concerns, but noted that the company’s performance was better than some expectations. UBS, however, maintained its price target at $315, praising Accenture’s strong execution capabilities despite market volatility. Additionally, Accenture made a strategic investment in Rehuman, a UK-based insurtech startup, to enhance customer engagement in the insurance industry. The financial terms of this investment were not disclosed. These developments reflect a mix of optimism and caution among analysts regarding Accenture’s future.
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