Global professional services company Accenture (ACN) has announced the acquisition of CS Technology, an infrastructure transformation services provider. The financial terms of the deal have been kept under wraps.
Following the news release, shares of the company gained 1.8% to close at $300 in Thursday’s trading session.
With this acquisition, Accenture’s Cloud First capacities will get a boost. The buyout will enhance Accenture’s cloud offerings to its clients and focus on optimizing their businesses.
Global Lead of Accenture Cloud First, Karthik Narain, said, “Accenture’s acquisition of CS Technology expands the hybrid cloud infrastructure capabilities our clients need to become cloud-first enterprises and realize value faster. The addition of CS Technology better positions Accenture Cloud First to design and execute fit-for-purpose, hybrid cloud strategies that achieve measurable business outcomes.” (See Accenture stock chart on TipRanks)
Recently, Argus Research analyst Jim Kelleher reiterated a Buy rating on the stock and raised the price target from $300 to $330, which implies upside potential of 10% 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, 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 $323.06 implies upside potential of 7.7% from current levels. Shares of the company have gained 39.1% over the past year.
Accenture scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Related News:
Philip Morris International to Acquire Fertin Pharma for $820M
Hewlett Packard Enterprise Boosts 5G Portfolio with Automated Solutions
PayPal Launches Omnichannel Platform Zettle
