Accenture downgraded to Underweight from Neutral at Piper Sandler

Piper Sandler analyst Arvind Ramnani downgraded Accenture to Underweight from Neutral with an unchanged price target of $268. The analyst cites the "challenged" technology spend environment in 2023 for the downgrade. While Accenture may have good fiscal Q1 results and reiterate fiscal 2023 targets, management will likely have an "increased tone of caution," Ramnani tells investors in a research note. He believes first half of 2023 estimates "appear reasonable," but sees a "modicum of risk" to second half numbers. IT Services is late-cycle, and software companies have started to indicate that 2023 tech is likely to be pressured, contends Ramnani.