Cowen Upgrades Accenture plc (ACN) to Outperform

Cowen upgraded Accenture plc (NYSE: ACN) from Neutral to Outperform with a price target of $110.00 (from $90.00).

Analyst Moshe Katri comments, "Our upgrade reflects Accenture’s strong performance in 2 main categories, including client spending intentions as well as spending intentions in digital. We believe strong scores in these categories will sustain recent acceleration on consulting bookings/revenue growth trends, resulting in improving overall top-line growth."

It was added, "We believe recent growth acceleration in consulting revenues and consulting bookings are sustainable given the company’s exposure to digital work (roughly 20% of FY15’s revenues, posting 20%+ growth), while the rest of Accenture’s revenue base is posting mid-single digit growth. Our sensitivity analysis suggests that digital could account close to 30% of revenues (on an organic basis) by FY17. Our survey suggests that Digital will likely be additive to Accenture's revenue growth rather than being dilutive."

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 $96.39 yesterday.

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