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Investing.com - Goldman Sachs has reiterated its Buy rating on Accenture plc (NYSE:ACN) with a price target of $330.00, according to a research note released Thursday. The IT services giant, currently trading at $232.56 and near its 52-week low, has seen its shares decline over 31% year-to-date. According to InvestingPro analysis, Accenture appears undervalued based on its Fair Value assessment.
The investment bank expects Accenture shares to remain range-bound following what it described as solid quarterly results and in-line guidance for fiscal year 2026. Goldman Sachs noted the company delivered strong bookings growth despite difficult year-over-year comparisons. The company maintains a healthy 6.2% revenue growth rate and offers a 2.48% dividend yield, having maintained dividend payments for 21 consecutive years.
The firm pointed to margin trends that continue to modestly undershoot estimates as a negative factor. Goldman Sachs believes Accenture continues to execute well in a challenging discretionary spending environment and expects revenue to re-accelerate in coming quarters as headwinds abate.
Goldman Sachs acknowledged that investor positioning on Accenture remains "extremely negative" due to concerns that artificial intelligence will significantly impact the business in the medium term. The firm suggested it could take multiple quarters of positive momentum before the stock can make meaningful gains.
The investment bank maintained its Buy rating based on its view that Accenture is delivering organic growth at or above peer levels during the current downturn and faces significant secular tailwinds once cyclical headwinds subside.
In other recent news, Accenture reported its fourth-quarter 2025 earnings, which exceeded expectations. The company announced an earnings per share (EPS) of $3.03, surpassing the forecasted $2.97, resulting in a 2.02% surprise. Additionally, Accenture’s revenue reached $17.6 billion, outperforming the anticipated $17.35 billion. Despite these strong financial results, BMO Capital has adjusted its price target for Accenture from $325 to $270, while maintaining a Market Perform rating. The firm noted that Accenture’s fiscal year 2026 revenue guidance aligns with its expectations. Accenture also reported solid bookings growth, which was notable given the low investor expectations. These developments provide investors with insights into Accenture’s recent performance and future outlook.
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