Close

Deutsche Bank Cuts Price Target on Accenture (ACN) Following 1Q Earnings Report

December 22, 2016 8:46 AM EST
Get Alerts ACN Hot Sheet
Price: $346.61 +1.66%

Rating Summary:
    25 Buy, 14 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE

Deutsche Bank maintained a Buy rating on Accenture plc (NYSE: ACN), and cut the price target to $127.00 (from $131.00), following the company's 1Q earnings report.

Analyst Bryan Keane commented, "ACN reported 1Q17 revs of $8,516m (6.3% Y/Y, ~7% cc) below st. and our est. of $8,572m primarily due to FX while EPS of $1.58 beat st. and our est. of $1.50 driven by better margins and a lower tax rate. Although we thought 8- 9% cc rev growth was possible for 1Q17, it's now become apparent that growth rates are slowing and ACN is likely to come in-line with its FY17 cc rev guidance of 5-8% Y/Y (in-line with preview). Bookings have softened (although expecting a rebound next qtr) and headcount growth continues to moderate. However, despite some softness in areas such as NA banking/capital markets, parts of NA resources and communications in Europe, ~85% of ACN’s business is growing double digits driven by the rotation to digital. We are maintaining our EPS estimates (cut estimates for FX in preview) and resetting a TP of $127. Maintain Buy."

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 $117.90 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Deutsche Bank, Earnings