On Friday, TD Cowen adjusted its outlook on Accenture plc (NYSE:ACN), increasing the price target to $363 from the previous $320. The firm maintained a Market Perform rating on the company's shares. The move comes ahead of Accenture's second-quarter results due on March 21, 2024.
The analyst at TD Cowen expressed a cautiously optimistic view on Accenture's upcoming quarterly report. The firm acknowledged the company's recent outperformance and high valuation but pointed out concerns about the current Services sector environment that could limit organic growth prospects for the fiscal year 2024.
TD Cowen highlighted several elements that could protect Accenture from significant downside risks. Among these is the company's active mergers and acquisitions strategy, which is expected to bolster overall growth. Additionally, the consensus around Accenture's performance has been described as de-risked.
The analyst also noted positive sentiment surrounding Accenture's GenAI initiative, which is seen as a potential growth driver. This optimism has contributed to the decision to raise the price target to the new level of $363. The report did not mention any changes to the stock's rating, which remains at Market Perform.
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