Accenture downgraded to Neutral at Susquehanna after Q2 report

As previously reported, Susquehanna downgraded Accenture to Neutral from Positive with a price target of $360, down from $400, after the company reported Q2 results and narrowed its FY24 adjusted EPS view. IT Services are getting “crowded out” by software and hyperscaler fees and the group is facing pricing pressure due to insourcing and automation, says the analyst, who contends that “there is something in the weather for IT Services, and even Accenture is getting wet.” Accenture shares are up about 50% over the last twelve months, notes Susquehanna, which is “lowering estimates toward sideways” and does not see enough upside to stay Positive in terms of its rating.