Stifel lowers Accenture stock price target to $315 from $355, maintains Buy rating

Investing.com - Stifel has reduced its price target on Accenture plc (NYSE:ACN) to $315.00 from $355.00 while maintaining a Buy rating on the stock. Currently trading at $237.87, near its 52-week low of $235.92, InvestingPro analysis suggests the stock is undervalued, with RSI indicating oversold conditions.

The firm notes that Accenture has underperformed the equal-weight S&P by approximately 2500 basis points over the last 90 days, attributing this to negative investor sentiment amid flattish to low-single-digit industry growth and the relative strength of AI-leveraged software and semiconductor sectors.

Stifel identifies several perceived higher-risk areas for Accenture, including Song (digital marketing), application services, and government services (DOGE), acknowledging these headwinds as legitimate while suggesting market fears "could easily exceed reality."

For the fourth quarter of fiscal 2025, Stifel expects potential outperformance with approximately 2% year-over-year constant currency organic revenue growth, supported by stable macroeconomic conditions and stronger U.S. federal results.

The firm describes the risk-reward profile as "very compelling" for patient investors, noting that Accenture’s EPS multiple on depressed earnings is at its lowest level since 2015/2016, another period characterized by economic weakness and technology transition. With analyst targets ranging from $240 to $372, InvestingPro offers 10+ additional exclusive insights and a comprehensive Pro Research Report for deeper analysis of Accenture’s potential.

In other recent news, Accenture has been actively expanding its capabilities through several strategic acquisitions. The company acquired Toronto-based IAMConcepts to enhance its identity and access management services, particularly in Canada’s critical infrastructure sectors. Additionally, Accenture has integrated UK-based MomentumABM into Accenture Song, adding expertise in account-based marketing strategies. These acquisitions aim to bolster Accenture’s offerings in both cybersecurity and marketing domains.

Meanwhile, Accenture’s collaboration with Eneva and Google Cloud is modernizing Eneva’s operations, optimizing asset management and maintenance. On the financial front, TD Cowen has lowered its price target for Accenture to $313, maintaining a Buy rating due to concerns about fiscal year 2026 guidance. Conversely, Rothschild Redburn downgraded Accenture from Buy to Neutral, citing potential offsets in AI growth by other business areas. These developments highlight the diverse strategies Accenture is employing to navigate its growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.