Accenture's AI Leadership and Strong Q4 Results Spark Analyst Optimism

Accenture: AI Leadership Can Send Shares To A New All-Time High (NYSE:ACN)

A positive growth outlook should support more upside for the stock. Accenture Plc (NYSE:ACN) stock rallied sharply as its fiscal 2024 Q4 earnings (for the period ended August 31) beat expectations. The global consulting giant is benefiting from a resilient global macroeconomic backdrop driving a new round Dan Victor is the winner of Seeking Alpha's 2023 Market Prediction Contest. A CFA Charterholder, Dan brings 20 years of professional finance industry experience including research and trading roles at major financial institutions.https://seekingalpha.com/article/4660791-2023-market-prediction-contest-winners Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ACN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Accenture Is A 'Key Beneficiary Of' GenAI: Analysts Raise Forecasts After Q4 Results - Accenture (NYSE:ACN)

The company's Q4 revenues and EPS come in at $16.41B and $2.79, versus consensus of $16.38B and $2.79. Accenture Plc ACN shares came under pressure in early trading on Friday, even after the company reported upbeat results for its fiscal fourth quarter. The company reported its results amid an exciting earnings season. Here are some key analyst takeaways. Piper Sandler On Accenture Analyst Arvind Ramnani upgraded the rating from Neutral to Overweight while lifting the price target from $329 to $395. Accenture reported $1 billion in GenAI-related bookings, bringing the total GenAI bookings to $3 billion for fiscal 2024, of which $900 million were converted into revenues during the year, Ramnani said in the upgrade note. Both bookings and revenues from GenAI grew by 10x in the year, he added. The analyst stated he was bullish on "the underlying metrics," which includes conservative guidance, robust bookings of $20.2 billion and a significant increase in hiring. "Overall, we believe owning ACN is attractive, given improving top-line metrics, a conservative guide and that it is a key beneficiary of GenAI-related work," he further wrote. Check out other analyst stock ratings. RBC Capital Markets On Accenture Analyst Daniel Perlin maintained an Outperform rating while raising the price target from $377 to $389. Accenture reported revenues of $16.41 billion and earnings of $2.79 per share, excluding charges, versus consensus of $16.38 billion and $2.79 per share, respectively, Perlin said. Operating margins, excluding charges, expanded 10 basis points (bps) year-on-year to 15.5%, versus Street expectations of 15.1%, he added. The midpoint of management's guidance for fiscal 2025 implies revenues of $68.79 billion and adjusted earnings of $12.73 per share, versus consensus of $68.16 billion and $12.78 per share, the analyst stated. "We believe ACN is uniquely positioned to help clients migrate to a digital core in order to take advantage of opportunities with AI and GenAI holistically," he further wrote. BMO Capital Markets On Accenture Analyst Keith Bachman reiterated a Market Perform rating while raising the price target from $380 to $390. Accenture delivered quarterly results that were "largely in line with our estimates," Bachman said. "We think the guide of 3%-6% y/y CC, including 3+ % of M&A, is the right starting point," he added. "Accenture has been inconsistent in meeting the mid-point of guidance the past few years, and we envision in-line results with upside tension to this range," the analyst wrote. He further stated that both Accenture and IBM can gain share in AI workloads. ACN Price Action: Shares of Accenture had declined by 0.49% to $354.01 at the time of publication on Friday. Read More: * Micron To $150? Here Are 10 Top Analyst Forecasts For Friday Photo: Shutterstock Market News and Data brought to you by Benzinga APIs

Watch These Accenture Stock Price Levels After Post-Earnings Jump

Accenture (ACN) shares could remain on watchlists Friday after jumping more than 5% Thursday following a better-than-expected earnings report and outlook from the management consultancy giant. The Dublin-based company, which also raised its quarterly dividend and approved an additional $4 billion in stock repurchases, has seen its share price rally around 17% over the past three months as businesses turn to the firm's generative AI solutions in an effort to reduce costs and improve efficiencies. Below, we discuss the technicals on Accenture's chart and identify important post-earnings price levels investors should watch out for. Accenture shares broke out from an inverse head and shoulders in July before undergoing a retracement to the pattern's neckline where the stock found a floor of support. More recently, bulls snapped up a dip to the closely-watched 200-day moving average (MA) following an impulsive move higher, with Thursday's stock gap closing above last week's peak on above-average volume to form a doji -- a single candlestick pattern in which the open and close prices are similar, typically reflecting indecision among market participants. In a win for the bulls, the 50-day MA sits poised to cross above the 200-day MA to form a golden cross, a chart signal that predicts higher prices. Accenture shares rose 5.6% to close at $355.81 on Thursday. Looking ahead, investors should keep an eye on two key overhead levels on Accenture's chart. The first sits around $387, a location where the shares could encounter significant resistance near the prominent March peak. We can forecast a price target to watch above the stock's record high by using a bars pattern. which uses prior price action to forecast a potential future move. In this case, if we take the stock's trending move higher from late October to early March and position it from this month's low, it projects an upside target of around $438. We selected this prior move as it started from a pullback to the 200-day MA, similar to the stock's latest upswing. Given the relative strength index (RSI) points to nearing overbought conditions in the stock, investors should keep the $335 level in mind during periods of profit-taking, an area on the chart likely to encounter support near a trendline connecting the January and September swing lows with the 200-day MA. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

Accenture Q4: Early Recovery In IT Consulting Market (NYSE:ACN)

I project Accenture's revenue to grow 7% annually, driven by digitalization, cloud computing, AI implementations, and M&A, supporting a 'Strong Buy' rating. I expressed my bullish view on Accenture plc (NYSE:ACN) in my initiation report published in June 2023, highlighting their long-term growth potential in generative AI and the continuing strength in cloud transformation. They released Q4 More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company's quality. I am targeting to achieve a 15% annual return in my portfolio. I typically construct my portfolio with 15-20 stocks, focusing on diversification of holdings, risk management, macro-driven sector weights, and disciplined trading and valuations as key factors.Disclosure: Lighting Rock and I are working in the same investment team. I am writing here independently. Analyst's Disclosure: I/we have a beneficial long position in the shares of ACN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Mizuho maintains Outperform rating on Accenture shares By Investing.com

Mizuho Securities has maintained a positive stance on Accenture plc (NYSE: NYSE:ACN), reaffirming an Outperform rating and a price target of $365.00. The endorsement comes after the company provided its fiscal year 2025 (FY25) guidance, which projected a currency constant (CC) growth of 3% to 6%. This forecast aligns with or slightly exceeds market expectations and is seen as a comforting sign after a less favorable fiscal year 2024 (FY24). The firm's analysis indicates a less severe reduction in operational expenditure among S&P 500 companies, suggesting that the demand for IT Services may experience a "softer landing" than previously anticipated. This perspective is based on proprietary research into the spending trends of these major corporations. Accenture's growing traction in the area of generative AI (GenAI) was also highlighted as a positive indicator. The company has reported new bookings of approximately $1 billion in this domain, an increase from over $900 million in the third fiscal quarter (F3Q). This uptick in new business is expected to contribute positively to the company's stock performance. The analyst's commentary underscores the resilience of Accenture's business model and the company's ability to adapt to changing market conditions. With the firm's analysis suggesting a more stable outlook for the IT Services sector, Accenture's consistent performance and strategic growth initiatives like GenAI appear to position the company favorably in the eyes of Mizuho Securities. In other recent news, Micron Technology (NASDAQ:MU) forecasted a higher-than-expected first-quarter revenue, sparking optimism for artificial intelligence (AI) chip demand. The positive outlook influenced other semiconductor stocks, including Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), and Broadcom (NASDAQ:AVGO). Fiona Cincotta, a senior market analyst at City Index, noted this resurgence of AI-driven optimism in the market. Accenture, a leading IT services firm, announced a significant $4 billion share buyback program following a strong fourth-quarter performance largely driven by the rising demand for generative artificial intelligence technology. Accenture's fourth-quarter revenue of $16.41 billion surpassed market expectations. The company's new bookings, a crucial indicator of future revenue potential, climbed to $20.1 billion. BMO Capital maintained its Market Perform rating on Accenture with a consistent price target of $380.00, anticipating a positive outcome in terms of bookings and revenue guidance, particularly due to favorable year-over-year comparisons and the impact of mergers and acquisitions. Accenture Federal Services, a subsidiary of Accenture, has been awarded a $90 million contract to support the Cybersecurity and Infrastructure Security Agency (CISA). The contract will aid CISA's Vulnerability Management Insights Branch by delivering risk mitigation strategies and actionable guidance. Accenture's recent guidance for fiscal year 2025 has been met with a positive outlook from Mizuho Securities, and the data from InvestingPro underscores the company's financial robustness. With a market capitalization of $211.17 billion, Accenture is a heavyweight in the IT Services industry, which is reflected in its positioning as a prominent player. The company's P/E ratio stands at 30.38, suggesting investors are willing to pay a premium for its earnings potential. This is further substantiated by the fact that Accenture has maintained dividend payments for 20 consecutive years, with a recent dividend yield of 1.53% and a notable dividend growth of 15.18% over the last twelve months as of Q3 2024. InvestingPro Tips highlight that six analysts have revised their earnings upwards for the upcoming period, which may be indicative of stronger financial performance ahead. Additionally, Accenture's stock is characterized by low price volatility, providing a sense of stability for investors. For those interested in a deeper dive into Accenture's financial health and stock performance, InvestingPro offers a comprehensive suite of additional tips. In fact, there are 10 more InvestingPro Tips available for Accenture, which can be accessed for further investment insights. Accenture's strategic growth initiatives, like their investment in generative AI, are expected to continue driving the company's success. The positive alignment between the company's growth projection and market expectations, as well as the resilience of its business model, are likely to keep Accenture in good stead in the eyes of investors and analysts alike.

Mizuho maintains Outperform rating on Accenture with no change in price target By Investing.com

Mizuho Securities has maintained a positive stance on Accenture plc (NYSE: NYSE:ACN), reaffirming an Outperform rating and a price target of $365.00. The endorsement comes after the company provided its fiscal year 2025 (FY25) guidance, which projected a currency constant (CC) growth of 3% to 6%. The forecast aligns with or slightly exceeds market expectations and is seen as a comforting sign after a less favorable fiscal year 2024 (FY24). The firm's analysis indicates a less severe reduction in operational expenditure among S&P 500 companies, suggesting that the demand for IT Services may experience a "softer landing" than previously anticipated. This perspective is based on proprietary research into the spending trends of these major corporations. Accenture's growing traction in the area of generative AI (GenAI) was also highlighted as a positive indicator. The company has reported new bookings of approximately $1 billion in this domain, an increase from over $900 million in the third fiscal quarter (F3Q). This uptick in new business is expected to contribute positively to the company's stock performance. The analyst's commentary underscores the resilience of Accenture's business model and the company's ability to adapt to changing market conditions. With the firm's analysis suggesting a more stable outlook for the IT Services sector, Accenture's consistent performance and strategic growth initiatives like GenAI appear to position the company favorably in the eyes of Mizuho Securities. In other recent news, Micron Technology (NASDAQ:MU) forecasted a higher-than-expected first-quarter revenue, sparking optimism for artificial intelligence (AI) chip demand. This positive outlook influenced other semiconductor stocks, including Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), and Broadcom (NASDAQ:AVGO). Fiona Cincotta, a senior market analyst at City Index, noted this resurgence of AI-driven optimism in the market. Accenture, a leading IT services firm, announced a significant $4 billion share buyback program following a strong fourth-quarter performance largely driven by the rising demand for generative artificial intelligence technology. Accenture's fourth-quarter revenue of $16.41 billion surpassed market expectations. The company's new bookings, a crucial indicator of future revenue potential, climbed to $20.1 billion. BMO Capital maintained its Market Perform rating on Accenture with a consistent price target of $380.00, anticipating a positive outcome in terms of bookings and revenue guidance, particularly due to favorable year-over-year comparisons and the impact of mergers and acquisitions. Accenture Federal Services, a subsidiary of Accenture, has been awarded a $90 million contract to support the Cybersecurity and Infrastructure Security Agency (CISA). The contract will aid CISA's Vulnerability Management Insights Branch by delivering risk mitigation strategies and actionable guidance. Accenture's recent guidance for fiscal year 2025 has been met with a positive outlook from Mizuho Securities, and the data from InvestingPro underscores the company's financial robustness. With a market capitalization of $211.17 billion, Accenture is a heavyweight in the IT Services industry, which is reflected in its positioning as a prominent player. The company's P/E ratio stands at 30.38, suggesting investors are willing to pay a premium for its earnings potential. This is further substantiated by the fact that Accenture has maintained dividend payments for 20 consecutive years, with a recent dividend yield of 1.53% and a notable dividend growth of 15.18% over the last twelve months as of Q3 2024. InvestingPro Tips highlight that six analysts have revised their earnings upwards for the upcoming period, which may be indicative of stronger financial performance ahead. Additionally, Accenture's stock is characterized by low price volatility, providing a sense of stability for investors. For those interested in a deeper dive into Accenture's financial health and stock performance, InvestingPro offers a comprehensive suite of additional tips. In fact, there are 10 more InvestingPro Tips available for Accenture, which can be accessed for further investment insights. Accenture's strategic growth initiatives, like their investment in generative AI, are expected to continue driving the company's success. The positive alignment between the company's growth projection and market expectations, as well as the resilience of its business model, are likely to keep Accenture in good stead in the eyes of investors and analysts alike.

BofA raises Accenture price target to $388 from $365, keeps buy rating By Investing.com

On Thursday, BofA Securities updated its outlook on Accenture plc (NYSE:ACN), raising the price target to $388 from $365 while maintaining a Buy rating on the stock. The firm's analyst pointed out key insights from Accenture's recent earnings call, highlighting the company's conservative forecast for fiscal year 2025. According to the analyst, the high end of Accenture's constant currency revenue guidance of 3-6% does not rely on an increase in discretionary spending. Conversely, the lower end of the guidance is structured to withstand some potential decline, which is not currently being observed. Accenture's initial fiscal year 2025 outlook has been well-received by investors for its cautious approach. The company's visibility into future performance is bolstered by a larger number of significant transformational deals in its backlog compared to the previous year. Both the Consulting and Managed Services segments of the business are projected to experience low to mid-single-digit growth in fiscal year 2025. The analyst also noted that mergers and acquisitions are anticipated to contribute over 3% to Accenture's revenue in fiscal year 2025. This suggests that the organic growth outlook for the company is approximately 0-3%, with the midpoint not requiring a substantial acceleration compared to the slightly positive exit rate of fiscal year 2024. The reaffirmed Buy rating reflects the analyst's continued positive stance on Accenture's stock. In other recent news, Accenture has been the focus of several significant developments. The company recently announced a $4 billion share buyback program following a robust fourth-quarter performance. Accenture's revenue for the quarter was $16.41 billion, surpassing market expectations, with new bookings reaching $20.1 billion. Notably, generative AI bookings contributed significantly, adding $1 billion to the total. Analysts from BofA Securities and Mizuho Securities have expressed confidence in the company, maintaining a Buy and Outperform rating respectively. BMO Capital, however, kept its Market Perform rating, anticipating positive outcomes in bookings and revenue guidance due to favorable year-over-year comparisons and the impact of mergers and acquisitions. Accenture's forecast for fiscal year 2025 anticipates constant currency revenue growth of 3-6%, slightly below BofA's anticipated 4-7% range. BofA Securities is looking forward to additional details, particularly concerning the impact of mergers and acquisitions and the assumptions underlying discretionary spending. Accenture Federal Services, a subsidiary of Accenture, was awarded a $90 million contract to support the Cybersecurity and Infrastructure Security Agency, providing risk mitigation strategies and actionable guidance. These recent developments highlight Accenture's continued growth and performance in the market. As Accenture (NYSE:ACN) receives a favorable outlook from BofA Securities, InvestingPro data and tips provide additional context for investors considering the stock. With a market capitalization of $221.23 billion and a forward P/E ratio of 29.1, Accenture stands as a significant force in the IT Services industry. The company's stock stability is reflected in its low price volatility, a reassuring sign for investors seeking steady performance. InvestingPro Tips highlight Accenture's consistent financial discipline, as evidenced by the company's ability to raise its dividend for 4 consecutive years and maintain dividend payments for 20 consecutive years. This is complemented by a dividend growth of 15.18% over the last twelve months, as of Q3 2024, demonstrating Accenture's commitment to returning value to shareholders. Additionally, the company's cash flows are robust enough to cover interest payments comfortably, indicating a healthy balance sheet. For investors seeking further insights, there are more than 10 additional InvestingPro Tips available, including analyst earnings revisions and profitability predictions for the year. With Accenture's next earnings date set for September 26, 2024, these tips could provide valuable guidance for those looking to make informed decisions about the stock. For a deeper dive into Accenture's financials and expert analysis, visit the dedicated page at https://www.investing.com/pro/ACN.

Accenture stock upgraded to Overweight, target raised to $395 By Investing.com

Piper Sandler has upgraded shares of Accenture plc (NYSE: NYSE:ACN) from Neutral to Overweight, with an increased price target of $395.00, elevated from the previous $329.00. The adjustment follows a positive assessment of the company's fiscal year 2025 outlook and underlying performance indicators. On Thursday, the firm highlighted Accenture's strong start to the first quarter, which exceeded consensus expectations. The company's robust bookings, which reached $20.2 billion with a book-to-bill ratio of 1.2x, were particularly noteworthy. Additionally, Accenture's aggressive hiring strategy, which saw a quarterly increase of 24,000 employees or 3.2%, was seen as a sign of strength. The company's outlook for FY25 is considered attractive, especially since the full-year guidance does not anticipate improvements beyond the first quarter. Piper Sandler expressed optimism regarding the exponential growth in Generation AI (GenAI) bookings and revenues. In FY24, GenAI bookings surged to $3 billion, and revenues climbed to $900 million, a significant leap from the previous year's $300 million in bookings and $100 million in revenues. Accenture's success in scaling GenAI projects and the growth in data and security-related work, which generated $9 billion in revenues and a 23% growth rate, were also factors contributing to the upgraded rating. Piper Sandler concluded that Accenture's improving top-line metrics, combined with a conservative guidance, make its stock an attractive investment, especially as the company benefits from increased GenAI-related activities.