Street Calls of the Week
Investing.com - Guggenheim lowered its price target on Accenture plc (NYSE:ACN) to $305.00 from $335.00 on Wednesday, while maintaining a Buy rating on the stock. The company, currently trading at $236.81, has seen its shares decline by about 27% over the past six months, with analyst targets ranging from $240 to $372.
The firm cited concerns about consensus expectations for the company’s fiscal first quarter 2026 revenue growth, which it believes appear "too lofty."
Guggenheim expressed caution about how investors might interpret potentially soft fiscal first quarter 2026 results, even if the full-year 2026 outlook aligns with Street revenue expectations.
The research firm noted it remains "well below consensus" for Accenture’s fiscal first quarter 2026 revenue growth, creating what it described as a "challenging setup" ahead of next week’s earnings report.
Guggenheim attributed its price target reduction primarily to "peer multiple compression" rather than fundamental changes in its long-term outlook for the consulting and technology services company.
In other recent news, Accenture has been actively expanding its capabilities through strategic acquisitions and partnerships. The company recently acquired IAMConcepts, a Canadian firm specializing in identity and access management services, to enhance its offerings in critical infrastructure industries across Canada. Additionally, Accenture has acquired UK-based MomentumABM to strengthen its B2B marketing strategies, incorporating approximately 90 specialists into its team. In a collaborative effort with Eneva and Google Cloud, Accenture is also modernizing Eneva’s operations using cloud, data, and AI technologies, leading to more efficient asset management.
On the financial front, Accenture’s stock price target has been adjusted by several firms. Stifel has lowered its price target for Accenture to $315 while maintaining a Buy rating, citing industry challenges and investor sentiment. Similarly, TD Cowen reduced its price target to $313 due to concerns over fiscal year 2026 guidance, yet also maintained a Buy rating. These adjustments reflect ongoing evaluations of the company’s growth prospects and market conditions. These developments provide a snapshot of Accenture’s recent activities and strategic direction.
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