Sachin Mittal, an analyst from DBS, maintained the Hold rating on Accenture (ACN – Research Report). The associated price target remains the same with $284.00.
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Sachin Mittal’s rating is based on a combination of factors that present a balanced outlook for Accenture. Despite the company’s efforts to drive long-term growth through significant investments in AI and strategic acquisitions, there are immediate challenges that temper enthusiasm. Accenture’s recent financial performance showed stable net income and slightly better-than-expected revenue growth, but the broader economic environment poses risks.
One of the key concerns highlighted is the potential impact of the US government’s spending cuts, which could slow down sales cycles and lead to contract cancellations, particularly affecting Accenture’s Federal Services unit. Additionally, the revised target price reflects uncertainties in tariff policies and a decline in peer average multiples, leading to a more cautious valuation. These factors contribute to a Hold rating, as the potential for growth is counterbalanced by near-term headwinds and market uncertainties.
In another report released on June 12, Morgan Stanley also maintained a Hold rating on the stock with a $340.00 price target.