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Morgan Stanley (NYSE:MS) reduced its price target on Accenture plc (NYSE:ACN) to $340.00 from $372.00 on Thursday, while maintaining an Equalweight rating on the global consulting firm’s stock. According to InvestingPro data, analyst targets for Accenture currently range from $280 to $395, with the stock trading at a P/E ratio of 26x.
The price target adjustment comes as Morgan Stanley notes that longer-duration deal conversions are helping to cushion Accenture against broader macroeconomic softness in the technology consulting sector.
The research firm expects management to raise the lower end of Accenture’s fiscal year 2025 growth guidance by 100 basis points to 6-7% year-over-year on a constant currency basis, compared to the previous guidance of 5-7% growth.
Morgan Stanley indicated that stable bookings are likely to keep the upper end of Accenture’s growth guidance unchanged, suggesting a mixed outlook for the company’s near-term performance.
The firm also highlighted potential vulnerabilities in Accenture’s Applied Intelligence and Software (ETR:SOWGn) (AFS) funding levels, noting that "DOGE pressure remains top of mind" as a continuing concern for the business segment.
In other recent news, Accenture has made significant strides with its AI Refinery platform in Europe, enhancing it with sovereign capabilities to ensure data control for organizations. This expansion, built on NVIDIA (NASDAQ:NVDA) Enterprise AI, aims to address data sovereignty concerns, particularly in critical sectors like energy and defense. Additionally, Accenture has invested in Reserv, an AI-driven insurance claims firm, to improve claims processing efficiency. This partnership is expected to streamline the claims process and enhance market competitiveness for insurers. In leadership changes, Ndidi Oteh has been appointed as the new CEO of Accenture Song, succeeding David Droga, who will assume a strategic vice chair role. Droga’s tenure saw Accenture Song’s revenue grow significantly, reflecting his impactful leadership. Meanwhile, TD Cowen has maintained its Buy rating on Accenture shares, with a price target of $336, despite industry growth concerns linked to Booz Allen (NYSE:BAH)’s financial results. Lastly, Accenture is partnering with OP Financial Group to modernize Pohjola Insurance’s IT systems, leveraging cloud technology and AI to enhance efficiency and customer service.
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