Global professional services company Accenture plc (NYSE:ACN) recently announced that its subsidiary, Accenture Federal Services (AFS), has received a contract worth $87 million from the U.S. Patent and Trademark Office, the federal agency responsible for granting U.S. patents and registering trademarks.
Following the news, shares of the company appreciated marginally to close at $415.27 on Tuesday.
Accenture is slated to report its upcoming earnings on March 17, 2022.
Under the terms of the contract, AFS will work in tandem with the Office of the Chief Information Officer to enhance the Trademark Product Line (TMPL) to make the full trademark lifecycle from filing to registration more efficient.
Further, AFS will operate as the prime systems integrator and modernize critical applications and create a DevSecOps infrastructure, while incorporating cloud, cyber and automation capabilities.
The U.S. Department of Commerce Lead for Accenture Federal Services, Rasha Nahas, said, “We look forward to bringing the resources of our Accenture Federal Digital Studio with omni-channel digital services and user-centered design to support the USPTO Trademark Product Line IT systems.”
Recently, Barclays analyst Ramsey El Assal reiterated a Buy rating on the stock. The analyst, however, raised the price target from $384 to $455, which implies upside potential of 9.6% from current levels.
The Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 11 Buys and 5 Holds. The average Accenture price target of $437.69 implies that the stock has upside potential of 5.4% from current levels. Shares have gained about 61.1% over the past year.