CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our price target by $40 to $414, 30x our FY 25 (Aug.) EPS view, a premium to IT consulting peers and ACN’s three-year average (~26.5x) given its consistent track record, large net cash position ($7.0B exiting Nov-Q), and industry tailwinds associated with AI. We maintain our FY 24 EPS view at $12.34, raise our FY 25 view by $0.20 to $13.81, and initiate our FY 26 estimate at $15.20. Industry commentary has been mixed regarding the current environment, but we think ACN is well positioned for either 1) a continued customer focus on cost-reduction initiatives, benefiting Managed Services, or 2) a resumption of large-scale transformation projects given its strong reputation and leadership position in generative AI (GenAI). We see ACN as a clear frontrunner in the race to establish leadership in AI, and think its balance sheet will allow it to continue to invest internally and externally. We expect industry-leading GenAI sales to be announced at ACN’s March 21 earnings release (following $450M in Nov-Q).