UBS Raises Price Target on Accenture (ACN) to $125; Remains Sidelined

UBS reiterated a Neutral rating on Accenture plc (NYSE: ACN), and raised the price target to $125.00 (from $115.00), following the company's 4Q earnings report.

Analyst Michael Briest commented, "Accenture closed out 2016 with a strong 9% growth rate in Q4, led by Products (+18%), which is expected to remain the strongest vertical in 2017 as digital initiatives remain a key priority. Digital was reported to make up $9.5bn of group sales in the year and to have grown 30% at c/c. This implies c4% growth in non-Digital activities and as this includes c$4bn from other parts of the "New" (cloud and security), it means that traditional service activities were likely very low-growth. If Digital grows at 25% in 2017, we calculate it would imply just 1% growth in non-Digital activities at the highend of the 5-8% range. Nonetheless, Accenture still seems well-placed to capitalise on the Digital opportunity, both organically and through further M&A (2017E c$1bn). It also seems committed to repositioning its legacy businesses for optimum profitability."

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 $121.64 yesterday.

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