On Friday, Baird, a financial services firm, adjusted its outlook on shares of Accenture plc (NYSE: NYSE:ACN), raising the price target to $390 from $370, while maintaining a Neutral rating on the stock. The revision follows Accenture's reported acceleration in fiscal first-quarter revenue growth and an improved constant-currency outlook for the future.
Currently trading at $372.16, Accenture commands a market capitalization of $232.55 billion and maintains a P/E ratio of 29.15. According to InvestingPro analysis, the stock is currently trading slightly above its Fair Value.
The analyst expressed optimism, noting that the trends for the company are improving and that the fiscal second-quarter guidance appears to be achievable. The adjustment also includes the removal of the Bearish Fresh Pick designation previously assigned to Accenture, signaling a shift in expectations based on recent performance data.
InvestingPro data shows the company maintains strong financial health with a "GOOD" overall rating, though it's currently trading near its 52-week high of $387.51.
Accenture's updated forecast and revenue growth were specifically highlighted as encouraging signs. The company's recent financial results have demonstrated a positive trajectory, prompting Baird to reassess the stock's potential and set a higher price target.
Despite the positive outlook on revenue growth, Baird remains cautious regarding the stock's valuation, citing a "reasonably modest EPS algorithm." The firm's stance reflects a balanced view, weighing the current financial metrics against projected earnings.
Looking ahead, Baird has taken into account the broader market expectations, referencing the Street's forecast for Accenture's fiscal year 2026. The Street anticipates over a 7% organic growth in constant-currency terms for that year, suggesting that a pickup in the macroeconomic environment may be necessary to meet these projections.
With current revenue growth at 1.22%, investors seeking deeper insights into Accenture's growth potential can access comprehensive analysis and 13 additional ProTips through InvestingPro's detailed research reports.
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