Accenture initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of Accenture with a Neutral rating and $335 price target. The firm initiated the Americas IT services sector and is positive on a select group of names citing their secular and cyclical opportunities. The industry is in the midst of a cyclical correction driven by IT spending constraints from macro pressures across a range of industry verticals and a near-term shift in spending priorities toward artificial intelligence-focused capex and away from software and services, the analyst tells investors in a research note. It believes Accenture has “best-in-class” generative AI capabilities but thinks its cyclical headwinds could persist for the next six months.