Accenture plc (NYSE: NYSE:) Receives Upgrade to Overweight by Piper Sandler with $395.00 Price Target
Piper Sandler has upgraded Accenture plc from Neutral to Overweight, setting a new price target of $395.00, up from $329.00. This upgrade comes after a positive evaluation of the company's fiscal year 2025 outlook and performance indicators.
In a recent report, Piper Sandler highlighted Accenture's strong start to the first quarter, surpassing consensus expectations. The company's impressive bookings of $20.2 billion and a book-to-bill ratio of 1.2x were particularly notable. Additionally, Accenture's aggressive hiring strategy, with a quarterly increase of 24,000 employees or 3.2%, was seen as a strong indicator of growth.
The outlook for FY25 is promising, with an anticipated exponential growth in Generation AI (GenAI) bookings and revenues. In FY24, GenAI bookings reached $3 billion, and revenues climbed to $900 million, a significant increase from the previous year. The company's success in scaling GenAI projects and the growth in data and security-related work, generating $9 billion in revenues with a 23% growth rate, were also factors contributing to the upgraded rating.
Piper Sandler concluded that Accenture's improving top-line metrics and conservative guidance make its stock an attractive investment, especially as the company benefits from increased GenAI-related activities.
In analysis, this upgrade indicates a positive outlook for Accenture's future performance and growth potential. Investors may consider this information when making decisions about their investment portfolios.