Accenture, the Technology sector company, was revisited by a Wall Street analyst today. Analyst James Faucette from Morgan Stanley maintained a Hold rating on the stock and has a $271.00 price target.
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James Faucette has given his Hold rating due to a combination of factors that reflect both opportunities and challenges for Accenture. The company’s growth outlook for FY26, projected at 2-5% year-over-year in constant currency, aligns with investor expectations, with a slight positive surprise in the impact of DOGE-related cost reductions. However, the anticipated benefits from investments in generative AI talent are expected to take time to materialize, which may temper near-term optimism.
Furthermore, while Accenture’s inorganic growth through mergers and acquisitions is expected to contribute positively, the organic growth outlook remains modest. The company’s margin expansion guidance remains intact, but the lack of significant improvement in bookings-to-revenue conversion suggests a cautious stance. Overall, while there are positive indicators such as improved visibility into cost reductions and strong ecosystem partnership revenue, the balance of these factors supports a Hold rating.
In another report released yesterday, BMO Capital also maintained a Hold rating on the stock with a $270.00 price target.