Citi raises price target for Accenture shares due to growth prospects By Investing.com

Citi updated its rating on Accenture plc (NYSE: NYSE:) and raised the price target from $350.00 to $405.00 while changing the Buy rating to…
This adjustment followed Accenture’s strong results in the third quarter of fiscal 2024, which resulted in a share price increase of approximately 24%.
Citi’s analysis suggests that Accenture is well positioned for accelerated growth in fiscal 2025, supported by slowly improving sentiment in the IT services sector.
Recent findings from a technology, media and telecommunications conference show relative demand stability and cautious optimism about corporate budgets for the calendar year 2025.
Despite this positive outlook, Citi recognizes several challenges for the industry in calendar year 2024, including macroeconomic factors, interest rate fluctuations and election cycles.
Citi believes Accenture’s constant currency growth outlook for fiscal 2025 may be somewhat more conservative – between 4% and 7%, compared to 5%-8% before the pandemic. While this forecast may be below some market expectations, particularly for earnings per share due to lower interest income following increased M&A activity, it still represents a growth acceleration scenario for the company.
In other recent news, the company’s revenue for the fiscal 2024 quarter was reported at $16.5 billion, up 1.4% for the third quarter. Additionally, Accenture has entered into a strategic partnership with F&G Annuities & Life to advance their technology infrastructure, and the platform is now operational.
Accenture’s recent strategic moves include investments in fintech company EMTECH and biotech company Earli Inc., known for its early cancer detection technology.
The company has also acquired BOSLAN, a Spanish engineering and project management firm, and announced plans to acquire Camelot Management Consultants and Logic. These acquisitions aim to enhance Accenture’s SAP and AI-powered supply chain offerings as well as retail technology capabilities.
InvestingPro Insights
Accenture’s (NYSE:ACN) recent performance has caught the attention of analysts and investors alike. With Citi’s updated outlook and price target increase, it’s worth noting that Accenture’s stock is trading with low price volatility, according to InvestingPro Tips. This stability, coupled with a history of 4 consecutive years of dividend increases and 20 years of dividend payments, highlights the company’s consistent shareholder returns. In addition, the company has been recognized as a prominent player in the IT services industry, which is consistent with Citi’s analysis of the company’s strong positioning for growth.
InvestingPro data highlights other Accenture financial metrics, including a market capitalization of $221.82 billion and a price-to-earnings (P/E) ratio of 31.83, adjusted to 29.22 for the trailing twelve months to Q3 2024. The company’s price-to-book ratio stands at 7.99, which has been suggested to suggest a premium valuation. Investors have been rewarded with a respectable return of 22.97% over the last three months. For dividend-focused investors, the company offers a dividend yield of 1.48%, with the last dividend ex-date recorded on July 11, 2024. These metrics, combined with a solid return of 13.66% over the last year, paint the picture of a robust investment opportunity.
For readers who want to dive deeper into Accenture’s financial health and market performance, additional InvestingPro Tips are available, providing a comprehensive set of insights to support informed investment decisions.

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