UBS Cuts Accenture (ACN) to Neutral Following Q3; Notes Risk at IBM (IBM)

June 28, 2013 8:38 AM EDT
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Price: $115.07 -0.37%

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    17 Buy, 15 Hold, 0 Sell

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    Up: 30 | Down: 30 | New: 23
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UBS downgraded Accenture plc (NYSE: ACN) from Buy to Neutral with a price target of $77.00 (from $85.00). Comments follow disappointing Q3 results that, the view of analyst Steven Milunovich, suggests broad weakness in enterprise.

"Accenture suffered its version of a miss, suggesting that enterprise demand is not improving," said Milunovich.

"With Oracle (Nasdaq: ORCL) and Accenture missing, enterprise demand appears to remain weak, which probably means a soft earnings season for large computer names. IBM (NYSE: IBM) has less consulting exposure and had blow-out orders last quarter, so perhaps it can still post services growth in the second half as guided, but the risk has increased," he said.

For an analyst ratings summary and ratings history on Accenture plc (NYSE: ACN) click here. For more ratings news on Accenture plc click here.

Shares of Accenture plc closed at $80.22 yesterday.

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