Piper Sandler cuts Accenture stock price target to $396

On Friday, Piper Sandler analyst Arvind (NSE:ARVN) Ramnani adjusted the price target on Accenture plc (NYSE: NYSE:ACN) stock to $396 from the previous target of $429, while maintaining an Overweight rating. Ramnani expressed caution about the company’s ability to deliver financial upside in the current quarter. According to InvestingPro data, five analysts have recently revised their earnings expectations downward, with analyst targets ranging from $323 to $455. The stock currently trades at a P/E ratio of 26.15, suggesting premium valuation relative to near-term earnings growth. Accenture is slated to report its second-quarter results on March 20th, amid high expectations within the sector.

The analyst noted that while investors had become more optimistic about the demand environment for the calendar year 2025 following Accenture’s positive first-quarter results and raised full-year estimates, there is now greater concern due to an uncertain macroeconomic environment and changing policy landscape. These factors may lead to decision-making delays that could impact the company’s performance.

Despite these concerns, Piper Sandler still maintains an Overweight rating on Accenture. The firm has revised its fiscal year 2025 revenue estimates downward by $460 million to $68.4 billion, with a corresponding decrease in earnings per share (EPS) from $12.67 to $12.59. Additionally, fiscal year 2026 revenue projections have been adjusted from $74.0 billion to $73.2 billion, with EPS estimates also reduced from $13.92 to $13.77. As a prominent player in the IT Services industry, Accenture has demonstrated consistent dividend growth, raising payments for 5 consecutive years with a current yield of 1.87%.

The decision to lower the price target to $396 is attributed to the reduced EPS estimates and anticipated multiple compression. Ramnani’s commentary suggests that while Accenture remains a strong player in the market, the current macroeconomic and policy conditions have introduced new risks that could temper the company’s earnings potential in the near term. For a comprehensive analysis of Accenture’s valuation and growth prospects, investors can access detailed Pro Research Reports and additional financial metrics through InvestingPro.

In other recent news, Accenture has announced several key developments that could impact investor perspectives. The company is set to release its second-quarter earnings on March 20, 2025, with analysts like Bryan Bergin from TD Cowen expecting results to surpass Wall Street’s forecasts, potentially leading to modest upward revisions in revenue and earnings guidance for the full year. Meanwhile, Goldman Sachs has maintained its Buy rating for Accenture, with a price target of $430, despite concerns about macro demand risks and potential foreign exchange impacts.

In strategic moves, Accenture has invested in OPAQUE, a confidential AI platform, to enhance data security and privacy in AI operations. This investment aligns with Accenture’s vision for responsible innovation in AI, emphasizing privacy and trust. Additionally, Accenture is acquiring Soben, a construction consultancy, to bolster its capabilities in capital projects, particularly in data center development. This acquisition aims to address challenges in the construction sector and meet the growing demand for cloud computing and AI.

Accenture has also partnered with CrowdStrike (NASDAQ:CRWD) to enhance cybersecurity operations, combining their technologies to improve threat detection and response. This collaboration is expected to streamline security workflows and reduce costs for organizations. These recent developments highlight Accenture’s strategic initiatives to expand its service offerings and address evolving industry challenges.

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