Barclays Reiterates an 'Overweight' on Accenture (ACN); Set Up Well for 3Q Report Given Solid Trends, Conservative Targets
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Price: $185.28 +2.17%
Rating Summary:
26 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
26 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays reiterates an 'Overweight' on Accenture plc (NYSE: ACN), PT $65.
Barclays analyst says, "We expect a solid 3Q report from ACN next week, with consensus estimates likely to move up out of the quarter, in our view. Amidst some recent softness in economic data points, we believe it's worth noting that even more recent readings of business confidence do continue to comfortably support ACN's guidance, which is notably conservative in its expectation for a material deceleration in local currency growth (particularly in FY 2012)."
"Given our analysis over the past few months supporting our view that ACN is in the early innings of a broad-based multi-year demand uptrend, we continue to consider shares of ACN undervalued at 14x our CY 2012 EPS estimate (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 strong years), with the company set up well for positive earnings momentum over the upcoming quarters." (Barclays raises FY11 EPS estimate from $3.30 to $3.32 and FY12 from $3.79 to $3.80)
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 $53.98 yesterday.
Barclays analyst says, "We expect a solid 3Q report from ACN next week, with consensus estimates likely to move up out of the quarter, in our view. Amidst some recent softness in economic data points, we believe it's worth noting that even more recent readings of business confidence do continue to comfortably support ACN's guidance, which is notably conservative in its expectation for a material deceleration in local currency growth (particularly in FY 2012)."
"Given our analysis over the past few months supporting our view that ACN is in the early innings of a broad-based multi-year demand uptrend, we continue to consider shares of ACN undervalued at 14x our CY 2012 EPS estimate (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 strong years), with the company set up well for positive earnings momentum over the upcoming quarters." (Barclays raises FY11 EPS estimate from $3.30 to $3.32 and FY12 from $3.79 to $3.80)
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 $53.98 yesterday.
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