RBC Capital Adjusts Accenture (ACN) Price Target Despite Outperform Rating
RBC Capital has lowered its price target on Accenture (ACN) to $285 from $372, while maintaining an Outperform rating on the company's shares. This adjustment follows the release of Accenture's Q4 results and initial FY26 outlook, which analysts found to be mixed compared to previous estimates.
Reasons for Price Target Revision
According to RBC's research note, the primary driver behind the price target reduction is the mixed FY26 guidance. While Accenture reported solid Q4 results, the forward-looking estimates failed to fully meet expectations, leading to stock price pressure.
Positive Signs: Bookings and Gen AI
Despite the lowered price target, RBC Capital highlights a positive trend: bookings have returned to year-over-year growth. Notably, Gen AI bookings exceeded $1.8 billion. Management commented that an increasing number of projects are transitioning from the proof-of-concept phase into full-scale production.
Valuation Adjustment
RBC is adjusting its financial model for Accenture, reducing the forward earnings multiple from 26-times to 20-times. This represents a "discount to the share’s historical average but roughly in line with similar growth peers," according to the analyst.
Investment Tools and Insights
Investors seeking to enhance their strategies can take advantage of TipRanks Premium, currently offered at a 55% discount. This platform provides access to investing tools, advanced data, and expert analyst insights designed to improve investment confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news.
