Stifel Reiterates Buy Rating on Accenture plc (ACN) Amid AI Headwinds

Stifel analyst David Grossman reiterated a Buy rating and $315.00 price target on Accenture plc (NYSE: ACN).

The analyst commented, "AI's impact on company/industry revenue growth remains a focus as investors work to isolate cyclical headwinds versus deflationary impacts. Our thoughts combine observations from this meeting, and our insights/analysis following the F4Q report.FY26 organic revenue growth guide is ~2%, ~350bp below pre-pandemic trend, or 200bp below-trend excluding DOGE-related headwinds. We believe macro-factors ("not expecting improvement near-term") combined with cost/complexity of AI-transformation are meaningful headwinds, which should diminish overtime. We also acknowledge an unquantifiable headwind from the AI-transition. To these points, we reviewed three major transitions that also represented an existential-threat accompanied by macro-uncertainty. While some downward revenue volatility initially, revenue typically recovered within 12-24 months. We recognize the difficulty owning ACN currently and the market's need to see consulting bookings reaccelerate to re-engage; however, at 17x EPS (2.7% dividendyield), stock offers compelling value for longer-term investors. "

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 $239.71 yesterday.

You May Also Be Interested In

• Ashland said to explore sale amid takeover interest - Bloomberg
• Sharplink and Galaxy Digital launch $125M onchain yield fund
• Raytheon wins $1.3 billion in missile defense contracts