Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Evercore ISI initiated coverage on Accenture plc (NYSE:ACN) with an Outperform rating and a $330.00 price target on Thursday. According to InvestingPro data, the stock is currently trading near its 52-week low, with analysts setting targets ranging from $263 to $395.
The research firm cited Accenture’s strong positioning to help enterprises navigate the complexities of the current AI-led technology transition over the medium term. Evercore ISI views the year-to-date stock underperformance of -19.37% as a buying opportunity, particularly as clarity emerges around macroeconomic conditions and DOGE initiatives. InvestingPro analysis shows the company maintains a GOOD overall financial health score, suggesting robust fundamentals despite market volatility.
Evercore ISI projects Accenture can achieve "$16+ medium-term EPS upside" by sustaining mid to high single-digit sales growth, 30-50 basis points of annual margin expansion, and double-digit EPS/FCF growth over the next several years. The firm expects AI to spur multi-year tailwinds for Accenture, similar to the uplift the company experienced during the initial proliferation of public cloud in the FY13-FY23 timeframe.
The research note highlighted Accenture’s market leadership, scale, and breadth of capabilities as factors positioning the company for continued market and IT spend outperformance. Evercore ISI also pointed to Accenture’s strong free cash flow conversion of approximately 130% of net income, which enables value-adding M&A strategies.
On valuation, Evercore ISI noted that Accenture is currently trading at a discount to its historical average, suggesting potential for multiple expansion toward the mean, supporting the $330 price target. The stock currently trades at a P/E ratio of 22.01, and InvestingPro analysis indicates additional valuable insights are available in the comprehensive Pro Research Report, which provides deep-dive analysis of Accenture’s financial health, valuation metrics, and growth prospects.
In other recent news, Accenture has been active with several notable developments. The company is set to report its fiscal fourth-quarter results in late September, which will include financial guidance for fiscal year 2026. UBS reiterated its Buy rating on Accenture following the acquisition of SYSTEMA, a German software solutions provider, enhancing Accenture’s capabilities in manufacturing automation. Meanwhile, TD Cowen adjusted its price target for Accenture to $342 from $347, maintaining a Buy rating despite noting light bookings and challenges in the Digital, Operations, Growth, and Enablement segment.
Accenture has also formed a strategic partnership with Palantir Technologies (NASDAQ:PLTR), where Accenture Federal Services will deploy AI-powered solutions for U.S. federal government customers. Stifel reiterated its Buy rating on Accenture, emphasizing the company’s strong management and potential upside to fiscal year 2026 estimates. UBS expressed confidence in Accenture’s ability to achieve 6-7% revenue growth, citing generative AI as a growth catalyst with bookings reaching $1.5 billion in the fiscal third quarter. These recent developments highlight Accenture’s ongoing strategic initiatives and market activities.
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