Analyst Sachin Mittal of DBS maintained a Hold rating on Accenture, reducing the price target to $295.00.
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Sachin Mittal’s rating is based on a combination of factors that present a mixed outlook for Accenture. While the company has shown promising revenue growth, particularly in its Managed Services and Consulting segments, its recent quarterly net income fell short of market expectations. This discrepancy suggests that while there is growth, it may not be as robust as anticipated by analysts.
Additionally, Accenture’s strategic investments in AI and acquisitions highlight its commitment to future growth, yet there are concerns about near-term challenges. The potential impact of reduced government spending in the US could pose risks to Accenture’s federal contracts, potentially leading to slower sales cycles. These factors combined lead to a Hold rating, reflecting a cautious stance amidst both promising opportunities and notable risks.
According to TipRanks, Mittal is a top 100 analyst with an average return of 22.5% and a 75.62% success rate. Mittal covers the Technology sector, focusing on stocks such as Accenture, Cognizant, and Wipro.
In another report released on June 24, Morgan Stanley also maintained a Hold rating on the stock with a $325.00 price target.