Accenture (ACN) has received a new Buy rating, initiated by Evercore ISI analyst, Amit Daryanani.
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Amit Daryanani has given his Buy rating due to a combination of factors that highlight Accenture’s strong positioning in the evolving technology landscape. One of the primary reasons is the company’s potential to achieve significant earnings per share (EPS) growth, driven by consistent sales increases and margin expansion. Accenture is expected to benefit from the ongoing AI revolution, similar to the growth experienced during the cloud adoption era, which positions it well for future success.
Amit also notes Accenture’s leadership in the industry, with its extensive capabilities and market presence, which should allow it to outperform in IT spending. The company’s robust free cash flow supports strategic mergers and acquisitions, further enhancing growth prospects. Additionally, Accenture’s current valuation presents a buying opportunity, as it trades below its historical average, with potential for stock price appreciation towards the target of $330.