Piper Sandler lifts Accenture shares target, maintains Neutral amid cautious outlook
ACN
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On Monday, Piper Sandler adjusted its price target for Accenture plc (NYSE:NYSE:ACN), increasing it to $394.00 from the previous $335.00, while keeping a Neutral stance on the stock. The firm anticipates that Accenture’s second-quarter financial results, which are set to be released on March 21, 2024, will align with the current subdued market expectations, which forecast a quarter-over-quarter revenue decline of 2.3%.
The analyst at Piper Sandler suggested that Accenture might revise down the higher end of its full-year 2024 revenue guidance, which currently stands between 2% and 5%. This adjustment is expected due to a potentially slower trajectory towards revenue acceleration in the second half of the year.
The current third-quarter consensus, indicating a 7.4% quarter-over-quarter growth, is viewed as overly optimistic, representing a 970 basis points sequential improvement, a feat not achieved by Accenture since the third quarter of fiscal year 2017.
The upcoming earnings call is likely to draw significant attention to Accenture’s commentary on the broader macroeconomic environment. There has been a divide among industry peers regarding the timing of an upturn in enterprise spending. While some expect an acceleration in the second half of the year, others have signaled a more challenging demand outlook for fiscal year 2024.
A particular area of interest for analysts and investors during the earnings call will be the company’s investment and spending on General Artificial Intelligence (GenAI) and broader technological trends. These factors are considered critical in assessing the company’s future growth trajectory and market position.
