TD Cowen expects ‘adverse reaction’ in Accenture shares to Q3 report, Q4 view

TD Cowen analyst Ashwin Shirvaikar notes that lighter consulting growth weighed Accenture’s Q3 upside and that the FY23 growth outlook has been reduced, with Q4 revenue and EPS guidance below the Street by 1.8% and 6.6%, respectively. However, “healthy margin execution” partly offsets this to support raised EPS and free cash flow targets. The firm, which expects “an adverse reaction to results following recent strength in shares,” has an Outperform rating and $325 price target on Accenture shares ahead of the company’s earnings call.