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On Wednesday, Stifel analysts adjusted their outlook for Accenture plc (NYSE:ACN), lowering the price target to $380 from the previous $390, while still recommending the stock as a Buy. The revision comes ahead of the company’s second fiscal quarter report, scheduled for March 20, following a series of underwhelming financial disclosures from peer companies last week. According to InvestingPro data, Accenture, with its $225.79B market cap, currently trades near its Fair Value, suggesting the market has efficiently priced the stock.
Companies such as EPAM, GLOB, and DAVA have reported revenue growth projections that fall short of market expectations. They cited a range of factors, including slower revenue conversion and a persistent focus on cost reduction over discretionary spending. Additionally, these companies are experiencing stable, but limited, pricing power. Accenture’s own revenue growth stands at 2.75% over the last twelve months, while maintaining strong financial health with a GOOD rating from InvestingPro’s comprehensive analysis.
The analysts noted that the enthusiasm that surged after the U.S. Presidential election has been tempered by new uncertainties, including concerns over tariffs, inflation, rising interest rates, and more volatile decision-making by businesses. These factors could lead to a temporary halt in enterprise spending, especially in areas requiring significant investment, such as artificial intelligence and related infrastructure.
Despite these challenges, Stifel remains confident in Accenture’s ability to meet its fiscal year 2025 guidance. However, they now anticipate that revenue growth will align more closely with the midpoint of the previously stated range of 4-7%. This adjustment reflects a roughly 100 basis point reduction from earlier expectations. Consequently, Stifel has also updated their fiscal year 2025 earnings estimate, which now sits below the consensus. With analyst targets ranging from $323 to $455, and a P/E ratio of 29.91x, investors seeking deeper insights can access comprehensive valuation metrics and 10+ additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Accenture has reported a series of significant developments. The company announced its agreement to acquire Staufen AG, a German management consulting firm, to enhance its supply chain and manufacturing capabilities. This acquisition aligns with Accenture’s strategy to improve operational excellence in sectors such as automotive and aerospace. Additionally, Accenture has partnered with Google (NASDAQ:GOOGL) Cloud to expand generative AI capabilities in Saudi Arabia, aiming to boost the country’s GDP and enhance enterprise intelligence.
Accenture also held its 2025 annual general meeting, where shareholders approved key proposals, including the appointment of directors and the ratification of KPMG LLP as the independent auditor. In another development, Accenture has entered a partnership with Italy’s BCC Iccrea Group to advance IT transformation goals, involving a significant investment and equity stake in BCC Sistemi Informatici. Furthermore, Accenture CEO Julie Sweet shared a health update with employees, although the specifics were not disclosed publicly. These recent developments highlight Accenture’s ongoing efforts to expand its capabilities and strengthen its strategic partnerships globally.
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