Accenture Stock (NYSE:ACN)
The share price of Accenture (NYSE:ACN) increased by almost 2% on Thursday after Piper Sandler upgraded the Accenture stock to Neutral from Underweight. In its research, Piper Sandler said that the company’s realistic projections for FY24 might receive a boost from AI.
Additionally, the business increased its price objective for Accenture stock, moving them up to $316 from $250.
Piper Sandler analysts said they were upgrading Accenture because they expect the company to continue to see bookings/revenue growth trends in its managed services business (which grew 12% Y/Y in Q2) and could begin to see stabilization or improvement in its consulting business (which fell -1 Y/Y in Q2) as demand grows for its AI and data related services.
As there is still one quarter left in FY23, the analysts anticipate that Accenture will make the FY23 projection more conservative when they report the following week. Although the analysts anticipate that the company’s management will refrain from commenting directly on the FY24 objectives over the next week, they anticipate that they will address the general demand climate. The analysts believe that the consensus projections for FY24 are acceptable. As a consequence of this, the experts believe that the general consensus estimate may be revised upward.
Analysts believe that businesses will look to work with Accenture as they outline their tech strategy, use cases, and think through their own AI approach, even though the firm’s stock has underperformed since early December and while it is early to comprehend the benefit Accenture will see from AI-related work.
The analysts believe that Accenture’s $3 billion investment was made after carefully considering return-on-investment (ROI) studies and that this is comparable to the investment they made in Cloud in 2020.
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Author Shariq Khan 
