Global professional services company Accenture (ACN) announced that it has acquired Bionic, a company that uses its proprietary tools to provide growth solutions to large organizations. The financial terms of the deal have been kept under wraps.
Following the news release, shares of the company gained marginally and closed at $297 in Tuesday’s extended trading session.
Following the acquisition, New York-based Bionic will join Accenture Interactive’s Growth and Business Design practice, which was started to discover innovative ways to grow a company. With Bionic’s proprietary GrowthOS, Accenture Interactive’s offerings to its clients will get a boost.
Global Growth and Business Design Practice Lead of Accenture Interactive, Pat Connolly, said “Many leaders know they need to adapt to meet fast-changing customer expectations, but face challenges making it happen. Bionic’s GrowthOS, combined with Accenture Interactive’s full suite of capabilities and accelerators, will enable our clients to improve the success rates of new growth initiatives with less risk.” (See Accenture stock chart on TipRanks)
Yesterday, Argus Research analyst Jim Kelleher reiterated a Buy rating on the stock. However, the analyst raised the price target from $300 to $330, which implies 11.3% upside potential from current levels.
According to Kelleher, Accenture’s better-than-expected third-quarter results, aided by significant growth in revenue and profits and raised guidance for 2021, gives the company a strong footing. Furthermore, deep financial capabilities and a wide customer base coupled with increased digital adoption among organizations act as tailwinds for the company.
Consensus among analysts is a Strong Buy based on 14 Buys and 4 Holds. The average Accenture price target of $322.50 implies upside potential of 8.8% from current levels.
Accenture scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares of the company have gained 38.1% over the past year.
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