Barclays Reiterates an 'Overweight' on Accenture plc (ACN); Q3 Earnings Preview

Barclays reiterates an 'Overweight' on Accenture plc (NYSE: ACN), PT $43.

Barclays analyst says, "With near-term trends set up well for ACN, we often receive questions around sustainability of longer-term growth. In this report (the second in a planned series of reports discussing ACN's operating groups, following a prior note centered around Financial Services published 5/12/11), we discuss key drivers in ACN's Products group (23% of FY10 revenues, with 16% local currency growth in 1H11). Our analysis continues to support our view that ACN is in the early innings of a multi-year demand uptrend (suggesting that guidance for revenue growth of 11-14% in FY11 and 7-10% in FY12 is conservative), and we expect consensus estimates to move up over time. With shares trading at 14x CY 2012 EPS, about 1.5 multiple points above the P/E of the S&P 500 (versus historical differential of 0.7 points over ACN's trading history but over 2 points in peak years such as CY 2007) and growth likely sustainable at a high level for multiple years, we continue to see strong value and reiterate our rating."

For more ratings news on Accenture plc click here and for the rating history of Accenture plc click here.

Shares of Accenture plc closed at $56.39 yesterday.

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