Accenture (ACN) revealed a strategic investment in the digital payments company Imburse through its subsidiary Accenture Ventures. Accenture is a professional services company with capabilities in digital, cloud, and security.
The collaboration between Accenture and Imburse will help businesses to fully optimize their payment capabilities. The move will also expand Accenture’s footprint to new markets and industry verticals. (See ACN stock chart on TipRanks)
Founded in Zurich, Switzerland in 2018, Imburse is a cloud-based, payments-as-a-service enterprise platform that works with several multinational clients including insurers, banks, and other large companies. It aims to easily connect legacy systems to the global payments ecosystem, using application programming interfaces (APIs).
Through the deal, Imburse will combine with Accenture Ventures’ Project Spotlight, an investment program focused on connecting emerging technology startups with the Global 2000 to bridge strategic innovation gaps.
Sulabh Agarwal, Global Head at Accenture’s Payments Group commented, “Payments systems at many companies are being stressed by changing consumer preferences – challenging them to offer the latest digital payment options while maintaining efficient operations.”
He further added, “Imburse’s payments platform removes integration challenges and acts as the payments glue for organizations, fusing all payments types including bank transfers, credit cards and digital wallets, to offer the customer seamless, quick, and secure experiences.”
Jefferies analyst Surinder Thind recently initiated coverage on Accenture with a Hold rating and a price target of $309 (8.2% upside potential).
Thind said “For current owners, we think the stock is worth holding onto amidst highly favorable secular trends and strong management execution that continues to drive market share gains. Given the company’s scale and strong competitive positioning, ACN warrants consideration as a core holding. However, for potential new investors, there may be better opportunity elsewhere within the IT Consulting group to earn higher returns in the year ahead.”
Overall, the stock has a Strong Buy consensus rating based on 6 Buys and 2 Holds. The average Accenture analyst price target of $308.88 implies 8.2% upside potential from current levels. Shares of Accenture have jumped 41% over the past year.
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