Accenture price target lowered to $300 at BNP Paribas on federal headwinds

Published 23/06/2025, 18:20
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Investing.com - BNP Paribas (OTC:BNPQY) Exane lowered its price target on Accenture plc (NYSE:ACN) to $300 from $330 on Monday while maintaining a Neutral rating on the stock.

The firm cited the DOGE impact on Accenture’s Federal business, which was immaterial in the third quarter but will create a 2% growth headwind in the fourth quarter. Mergers and acquisitions are expected to add just 1 percentage point to Q4 growth, down from 3% in Q3 and 4% in the first half of the year.

Accenture has guided fourth-quarter growth to approximately 4% organic constant currency at the high end, or just 2% after accounting for the US Federal impact. BNP Paribas now expects the US Federal headwind to be 150 basis points year-over-year for fiscal year 2026, up from its previous estimate of 75 basis points.

The firm maintained its 2% M&A assumption for FY’26 based on company commentary, despite lower guided FY’25 spending and the 1% exit rate. This adjustment has lowered BNP’s FY’26 constant currency growth estimate from 6.6% to 5.8%, or 5.2% underlying organic growth excluding US Federal impact.

BNP Paribas noted it would not be surprised to see Accenture begin FY’26 with guidance limited to 5% constant currency growth at the high end, compared to 7% in FY’25, despite the company’s newly announced growth model change with the creation of an integrated Reinvention Services unit.

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