Oracle stock price target raised to $400 from $250 at Global Equities
Investing.com - Rothschild Redburn downgraded Accenture plc (NYSE:ACN) from Buy to Neutral on Wednesday, setting a price target of $250.00. According to InvestingPro data, five analysts have recently revised their earnings estimates downward for the upcoming period, while the stock currently trades at a P/E ratio of 20.1x.
The downgrade comes despite Accenture’s strong position to capture generative AI spending, with the firm citing concerns that growth in other business areas may be offsetting AI-related gains.
Rothschild Redburn noted that while AWS reports 44% of client AI projects are moving into production and Accenture continues to record period-over-period generative AI bookings growth, this growth is slowing.
The research firm pointed to Accenture’s third-quarter fiscal 2025 organic revenue growth of 5%, which is approximately 50% lower than its pre-pandemic average, as evidence of potential weakness in non-AI business segments.
Accenture faces an additional 2-percentage-point headwind to short-term revenue growth due to slowing procurement and contract cancellations by the federal government expected over the next four quarters. Despite these challenges, InvestingPro analysis indicates the company maintains strong financial health with an Altman Z-Score of 9.78 and moderate debt levels. Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report.
In other recent news, Accenture reported its third-quarter financial results for 2025, highlighting a 12% year-over-year increase in earnings per share to $3.49 and a 7% growth in revenue, reaching $17.7 billion. In addition to its financial performance, Accenture has been active in expanding its capabilities and services. The company announced an investment in CLIKA, an AI compression platform, through its Accenture Ventures arm. This investment is intended to enhance Accenture’s intelligent edge and infrastructure engineering capabilities, particularly in the deployment of AI for edge devices. Furthermore, Accenture acquired Superdigital, a U.S.-based social and influencer marketing agency, to bolster its marketing services. The Superdigital team, consisting of over 40 employees, will be integrated into Accenture Song, the company’s creative division. These strategic moves reflect Accenture’s ongoing efforts to strengthen its market position and service offerings.
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