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Research Alert: CFRA Lowers Opinion On Shares Of Accenture Plc To Buy From Strong Buy
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Research Alert: CFRA Lowers Opinion On Shares Of Accenture Plc To Buy From Strong Buy
Jun 20, 2025 1:25 PM

04:00 PM EDT, 06/20/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our price target by $78 to $331, applying a P/E ratio of 24x to our FY 26 (Aug.) EPS estimate, above peers given ACN's industry-leading AI business and rock-solid balance sheet but a slight discount to the company's three-year average (~25x) as AI momentum is being offset by rising industry uncertainty that is slowing the company's near-term growth potential. We increase our FY 25 EPS view by $0.11 to $12.87 and lower our FY 26 estimate by $0.17 to $13.79. ACN's FQ3 results were impressive with respect to sales, EPS, and cash flow, but a continued decline in bookings (TTM book-to-bill of 1.16x vs. 1.25x Y/Y) is dampening some of our optimism around its AI business. We remain largely bullish, especially as agentic AI applications take off in the coming quarters (benefiting ACN's AI Refinery platform). However, our downgrade is also being informed by a higher-than-expected uptick in attrition (16%, +300 bps Q/Q), which adds to worries about the company's ability to execute on its sizeable backlog.

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