Analyst James Faucette from Morgan Stanley maintained a Hold rating on Accenture (ACN – Research Report) and decreased the price target to $372.00 from $380.00.
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James Faucette has given his Hold rating due to a combination of factors influencing Accenture’s current market position. The sentiment among investors appears to be negative ahead of Accenture’s upcoming earnings report, with concerns about the impact of DOGE spending cuts and a slowdown in industry bookings. These factors have led to a trimming of growth expectations, prompting a slight reduction in revenue and EPS estimates for FY25 and FY26.
Despite these challenges, there is an expectation that management will raise the lower end of the FY25 growth outlook, although the top end is likely to remain unchanged. This adjustment reflects a cautious optimism about the company’s ability to achieve a 5-7% year-over-year growth. However, the potential for positive stock reactions may be short-lived, as there are concerns about possible downward revisions in FY26 growth estimates due to muted AFS growth and reduced discretionary spending. Consequently, the price target has been lowered to $372, reflecting a more conservative outlook.