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Accenture’s Mixed Performance: Hold Rating Amid Growth Concerns and Strategic Strengths

Accenture’s Mixed Performance: Hold Rating Amid Growth Concerns and Strategic Strengths

Analyst James Friedman of Susquehanna reiterated a Hold rating on Accenture (ACNResearch Report), with a price target of $330.00.

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James Friedman has given his Hold rating due to a combination of factors impacting Accenture’s performance and outlook. While the company reported solid in-quarter results with revenue growth and margin expansion, there are concerns about future performance. The consulting book-to-bill ratio has decreased, and several verticals are experiencing slower growth, which could affect future revenue. Additionally, the guidance for the fourth quarter of 2025 suggests a deceleration in organic revenue growth, raising caution about the company’s trajectory.
Despite these challenges, Accenture has demonstrated strengths in areas such as big deals, BFS acceleration, and cloud services. However, weaknesses like a decline in total bookings and a reduced annual margin guide highlight potential risks. Given these mixed signals, James Friedman maintains a Neutral rating with a $330 price target, reflecting a balanced view of the company’s prospects amid peer group multiple compression.

In another report released on June 19, DBS also maintained a Hold rating on the stock with a $284.00 price target.

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