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Investing.com - Guggenheim lowered its price target on Accenture plc (NYSE:ACN) to $335.00 from $360.00 on Monday, while maintaining a Buy rating on the consulting firm’s stock. The new target still suggests potential upside, with analysts’ targets ranging from $290 to $395. According to InvestingPro data, the stock is currently trading near its 52-week low of $273.19.
The price target reduction follows Accenture’s fiscal third-quarter 2025 results, which exceeded expectations partly due to favorable foreign exchange rates. The company maintains strong fundamentals with a 32% gross profit margin and healthy returns, showing a 27% return on equity. Despite the strong quarterly performance, Guggenheim expressed concerns about fiscal year 2026 expectations potentially being too high.
Guggenheim highlighted specific headwinds facing Accenture, particularly noting that Accenture Federal Services is expected to create a 2% growth headwind in the fourth quarter of fiscal 2025. The firm also pointed to limited inorganic contribution at this stage. InvestingPro analysis reveals that 9 analysts have revised their earnings downward for the upcoming period, though the company maintains a solid financial health score.
Despite the near-term caution, Guggenheim maintained its constructive view on Accenture shares over the medium term. The firm continues to see Accenture benefiting from delivering on clients’ cost optimization initiatives and transformational agendas going forward.
Accenture’s third-quarter results were not a major concern for investors, according to Guggenheim, which noted that its client conversations had indicated confidence in the company’s fiscal third-quarter 2025 performance.
In other recent news, Accenture has announced a restructuring of its operations to form a new integrated business unit called Reinvention Services, effective September 1, 2025. This reorganization aims to enhance service delivery by embedding data and AI capabilities more effectively, with Manish Sharma appointed as Chief Services Officer. In financial projections, Accenture has modestly increased its fiscal year 2025 guidance, now expecting 5-7% nominal revenue growth and 3% organic growth for the full year. Analysts at Stifel maintain a Buy rating on Accenture, projecting that the company will meet fiscal third-quarter targets despite market challenges, while Morgan Stanley (NYSE:MS) has adjusted its price target to $340, citing macroeconomic concerns. Additionally, Accenture has expanded its AI Refinery platform in Europe to enhance data sovereignty and support critical industries like energy and defense. The company has also invested in Reserv, an AI-driven insurance claims processing firm, to boost efficiency and accuracy in the insurance sector. These developments reflect Accenture’s strategic initiatives to integrate advanced technologies and maintain its competitive edge in the global market.
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