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Investing.com - Wolfe Research has lowered its price target on Accenture plc (NYSE:ACN) to $285 from $290 while maintaining an Outperform rating on the stock. The company, currently trading near its 52-week low of $234.18, shows potential upside according to InvestingPro’s Fair Value analysis.
The adjustment comes as Wolfe Research revised its calendar year 2027 earnings per share estimate for Accenture to $15.03 from $15.10 previously. The company currently trades at a P/E ratio of 19.05x, with a solid financial health score rated as "GOOD" by InvestingPro’s comprehensive analysis system.
Despite the slight reduction in price target, Wolfe Research continues to view Accenture as maintaining a "best-in-class digital franchise" built on higher-value offerings including Cloud, Security, Interactive, and Industry X solutions, along with what it describes as a sound delivery model.
The research firm believes Accenture’s investments in artificial intelligence, Accenture Cloud, and other digital offerings will position the company to meet increasing demand for cloud and digital transformations, with potential upside to consensus estimates in 2026 as discretionary demand improves.
Wolfe Research acknowledges some concerns around tariffs and DOGE implications but expects Accenture’s end-to-end capabilities and strong consulting presence with domain expertise will enable it to gain market share as enterprises increasingly adopt generative AI technologies.
In other recent news, Accenture has announced plans to acquire the French Orlade Group, which specializes in advisory and project management services for capital projects. This acquisition will add approximately 200 professionals to Accenture’s workforce, enhancing its infrastructure and capital projects practice. In a separate development, Accenture is partnering with Eneva and Google Cloud to modernize Eneva’s operations using cloud, data, and artificial intelligence technologies. This initiative aims to optimize asset management and maintenance scheduling for the Brazilian energy provider.
Meanwhile, analyst firms have adjusted their outlook on Accenture. Guggenheim has lowered its price target for Accenture to $305, citing concerns about the company’s fiscal first-quarter 2026 revenue growth expectations. Stifel also reduced its price target to $315, maintaining a Buy rating while noting Accenture’s underperformance relative to the S&P over the past 90 days. Additionally, Accenture, along with other major users of the H-1B visa program, could face challenges due to a proposed $100,000 fee for H-1B visa applications by the Trump administration, potentially impacting its business model.
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