Morgan Stanley analyst James Faucette upgraded the rating on Accenture to a Buy today, setting a price target of $320.00.
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James Faucette has given his Buy rating due to a combination of factors that suggest an optimistic outlook for Accenture’s stock. Despite a 21% decline year-to-date, largely attributed to market concerns about potential disruptions from generative AI and the impact of DOGE, Faucette believes these issues are already reflected in the current stock valuation. He sees growth opportunities through mergers and acquisitions and ecosystem partnerships, which could drive future estimate revisions upward.
Furthermore, Faucette anticipates that lower interest rates and increased clarity in AI investment paths will positively influence Accenture’s performance. He highlights that Accenture’s valuation, currently at an 18% discount to the S&P 500, is compelling, especially given the company’s historical market premium. With a base case price target of $320, Faucette expects medium-term valuation expansion, supported by strategic partnerships and accelerated M&A activities, positioning Accenture to outperform in the tech sector.
In another report released on December 12, Stifel Nicolaus also maintained a Buy rating on the stock with a $315.00 price target.