UBS Upgrades Accenture plc (ACN) to Buy

UBS analyst Kevin McVeigh upgraded Accenture plc (NYSE: ACN) from Neutral to Buy with a price target of $400.00.

The analyst comments "We upgrade the ACN stock to Buy from Neutral as we see opportunity for multiple expansion as the market anticipates accelerating revenue growth amid AI optionality. While we appreciate concern about the pace of IT spending we believe the change in business mix [towards cloud, digital transformation, cybersecurity and now Gen AI] should drive higher and more durable growth. Furthermore, our analysis of the company's top 10 alliance partners' revenue relative to ACN's is indicative of top-line acceleration over the next 12 months. As such, we believe the stock is not pricing the extent of GenAI optionality in the stock [ACN achieved ~$2B in Gen AI bookings YTD FQ3-May-24, as opposed to $300m in FY-Aug-23]. We also believe Gen AI adoption is poised to accelerate as clients realize value at scale from experimentation, possibly scaling even faster than ACN's cloud business—$32b revenue [~50% total] in FY23 from $1B [less than 5%] in FY12."

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 $325.60 yesterday.

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