Accenture Buys Wolox To Boost Cloud Business In South America

Global consultancy firm Accenture has acquired Argentina-based cloud services firm Wolox for an undisclosed sum.

Accenture (ACN) said that the deal will strengthen its cloud services business in Argentina and South America.

Sergio Kaufman, president of Accenture Argentina and Hispanic South America said, “We will integrate Wolox across Accenture’s services, including Strategy & Consulting, Interactive, Technology and Operations, enabling us to deliver 360 degree value for our clients, people, shareholders, partners and communities.” (See ACN stock analysis on TipRanks)

Last month, Accenture reported 1Q results and raised its fiscal year revenue forecast. The company’s 1Q earnings of $2.17 per share grew 8% year-over-year and topped the Street’s estimates of $2.02 per share. Revenue increased 4% year-over-year to $11.76 billion and beat the Street consensus of $11.28 billion. New bookings grew 25% to $12.9 billion in the first quarter.

On Jan. 6, Merrill Lynch analyst Jason Kupferberg upgraded Accenture stock to Hold from Sell and maintained a price target of $261 (2.9% upside potential). In a note to investors, the analyst said that the momentum in the company’s bookings should remain strong in the near term. However, the stock’s valuation is keeping him on the sidelines.

From the rest of the Street, the stock scores a cautiously optimistic outlook with the analyst consensus of a Moderate Buy based on 8 Buys and 6 Holds. The average analyst price target of $278.64 implies upside potential of about 9.9% to current levels. Shares have gained 24.5% in one year.

From TipRanks’ Smart Score system, ACN gets a “Perfect 10”, indicating that the stock has a strong chance of beating market expectations.

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