Accenture plc (ACN) PT Raised to $210 at Wells Fargo

Wells Fargo analyst Jason Kupferberg raised the price target on Accenture plc (NYSE: ACN) to $210.00 (from $194.00) while maintaining a Equal Weight rating.

The analyst comments "Earnings call takeaways: (1) F4Q rev upside was from non-discretionary small deals, AFS, faster project ramps, performance of acquisitions. (2) Direct headwinds from ME intensified in F4Q, while indirect headwinds began to stabilize. Top end of F27 guide assumes stable/slightly improved discretionary spending, while low end allows for deterioration. (3) While pricing was stable in F26, F4Q was lower than expected in several areas of the business. (4) Expect less headcount growth in F27 vs. F26. Earnings Callback Takeaways: (1) Expect midpoint of F1Q/F27 revs guide as most likely given uncertain macro conditions. Upside drivers to F4Q revs are not baked into F27 guide. (2) Given lower contract profitability in F4Q (expected to continue in F27) and ramp of investments, expect op. margin expansion at lower end of +10bps-30bps range. (3) ACN may see quarters where y/y margin expansion is outside the FY range. Anticipate more y/y margin expansion in F2H vs. F1H. Earnings Callback Takeaways (cont): (4) Expect F1Q27 bookings to be <$20B given traditional soft seasonality and strong F4Q26 results. (5) Expect growth in both Consulting and Managed Services revs to be in line with F27 guide of 3%-6% y/y. (6) $1B investment with Anthropic is across ACN's safety business (i.e., frontier model agnostic, not specific to Anthropic). (7) F1Q26 "other income" included ~$92M one-time unique gain on investments which is not expected in F1Q27. Adjusting estimates and PT following F4Q results and management commentary. We tweak our F27/F28 revs and adj. EPS estimates to $77.33B/$81.20B and $14.60/$16.03 from $76.66B/$80.50B and $14.77/$16.32 prior, respectively. We also roll out initial F29 revs/adj. EPS estimates of $85.26B/$17.46. We raise our PT to $210 from $194 prior based on 14x C27e P/E (12x prior) and our DCF."

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