Accenture downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Bryan Keane downgraded Accenture to Hold from Buy with a price target of $295, down from $409. After the company’s organic revenues contracted an estimated 2.5% in fiscal Q2, Deutsche believes Accenture as gone from a share gainer for most of its history to now losing market share to its peers in IT services, the analyst tells investors in a research note. The firm says the companies’ outlook continues to be fundamentally weak with further potential downward revisions to Street estimates are possible. Channel checks suggest that generative artificial intelligence will not be a catalyst for outsized revenue growth for Accenture over the near- and medium-term and is causing disruption to existing pricing structures.