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Accenture selloff extends as TD Cowen downgrades after soft forecast

Published 23/06/2023, 13:58
© Reuters
ACN
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Accenture (NYSE:ACN) shares are down a further 2% after closing 1.9% lower yesterday on the back of the softer-than-expected forecast.

TD Cowen analysts downgraded the stock to Market Perform today to reflect a “further deterioration in demand signals that yields incremental uncertainty & estimate risk.”

Moreover, analysts highlight “full” validation following a period of recent outperformance on the back of the generative AI frenzy.

“We see a less favorable risk/reward scenario,” said analysts in a downgrade note.

The new price target on ACN stock is $300 per share.

The company guided for FQ4 revenue of $16.05 billion, $300 million lower than the consensus. As a result, the company modestly lowered its full-year revenue growth outlook to +8.5% from +9%.

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