Stifel reiterates Buy rating on Accenture stock, cites strong management

Investing.com - Stifel maintained its Buy rating on Accenture plc (NYSE:ACN) stock, highlighting the company’s management quality despite current market challenges. The IT services giant, with a market capitalization of $180.52 billion, is currently trading near its 52-week low, according to InvestingPro data.

In its research note, Stifel described Accenture as the "consistently best managed business in the sector," suggesting confidence in the company’s leadership despite near-term headwinds.

The firm acknowledged it remains difficult to distinguish between cyclical and secular challenges facing Accenture, noting that market sentiment has defaulted to a "negative AI narrative" for the company.

Accenture is scheduled to report its fiscal fourth-quarter results in late September, which will include the company’s financial guidance for fiscal year 2026.

Stifel indicated that the current fiscal year 2026 consensus estimates for Accenture appear "reasonable, if not beatable," suggesting potential upside to analyst forecasts.

In other recent news, Accenture has reported its fiscal third-quarter results, exceeding expectations with a 4% year-over-year organic growth, surpassing the consensus estimate of 2%. Earnings per share rose 13%, outperforming the expected 6% increase. Despite these positive results, Accenture has adjusted its fiscal 2025 merger and acquisition spending to $1 billion-$1.5 billion, down from the previous $2 billion-$3 billion target, due to current market conditions. The company’s fiscal fourth-quarter revenue guidance of 0-4% organic growth remains largely unchanged, highlighting ongoing macroeconomic uncertainty. Accenture also announced a strategic acquisition of SYSTEMA, a German software solutions provider, to bolster its manufacturing automation capabilities, although financial terms were not disclosed. UBS reiterated its Buy rating on Accenture, citing growth potential in generative AI, with new bookings reaching $1.5 billion in the fiscal third quarter. Meanwhile, TD Cowen lowered its price target for Accenture to $342, citing light bookings and a headwind in the DOGE segment. Despite these challenges, Stifel maintained its Buy rating, noting the company’s strong performance in consulting and outsourcing segments.

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