IT services and consulting giant Accenture (ACN) ended Fiscal Year 2021 on a solid note, reflected through its better-than-expected Q4 performance and upbeat FY22 outlook.
Furthermore, it announced a 10% hike in its quarterly dividend, and approved additional share repurchase authorization of $3 billion. I maintain a bullish outlook on Accenture stock.
Thanks to its strong financial performance and strength across all industry verticals, Accenture stock has risen more than 54% over the past year. (See Accenture stock charts on TipRanks)
Accenture expects its revenues to increase by 12%-15% on a constant currency basis in FY22. Accenture forecasts FY22 EPS to increase by 13%-16% year-over-year.
Taking a note of its strong outlook, Deutsche Bank analyst Bryan Keane stated that Accenture’s guidance indicates “faster normalized growth rates.”
Keane added that while bookings in Q4 were slightly below expectations ($15 billion compared to $15.7 billion), the “recent strength in bookings has been broad-based and is expected to continue.”
Keane has a Buy rating on Accenture stock, with a price target of $395 (17.5% upside potential)
Along with Keane, the majority of the Street has a bullish view on ACN. Its Strong Buy consensus rating is based on 12 Buys and two Holds.
Furthermore, Accenture stock scores a “Perfect 10” on TipRanks’ Smart Score system, with positive indicators from investors and hedge fund managers.
The average Accenture price target of $380.15 implies 13.1% upside potential from current levels.
Disclosure: On the date of publication, Amit Singh had no position in any of the companies discussed in this article.
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