Deutsche Bank Cuts Price Target on Accenture (ACN) Following 1Q Earnings Report
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."
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Shares of Accenture plc closed at $117.90 yesterday.