Deutsche Bank Reiterates Hold Rating on Accenture plc (ACN)

Deutsche Bank analyst Bryan Keane reiterated a Hold rating and $295.00 price target on Accenture plc (NYSE: ACN).

The analyst comments "On June 20th before the open, we expect ACN to report 3Q24 revenue of $16,557m (flat Y/Y, ~1% cc or -2%/-3% organic) and EPS of $3.17. We believe ACN will reduce the top end of its FY24 revenue growth guidance by ~1ppt to ~1-2% cc and guide 4Q24 revenue growth in the range of ~2-6% cc. Notably, these growth targets include the impact of an aggressive acquisition campaign, implying negative organic growth for the year and likely for 3Q24 and 4Q24 (trailing organic growth of peers demonstrating share loss, in our view). Recent bookings have prioritized large-scale transformation, and these deal types result in slower revenue conversion in a weak IT spending environment. Additionally, we are seeing no meaningful positive contribution from GenAI over the near/ mid-term and believe the debate on whether GenAI is a positive or negative for IT Service players to continue over at least the next 12 months. See our recent downgrade of ACN “Accenture Plc: Downgrading to Hold, Headwinds Likely to Persist”. Hold."

For an analyst ratings summary and ratings history on Accenture plc click here. For more ratings news on Accenture plc click here.

Shares of Accenture plc closed at $294.22 yesterday.

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