On Friday, Mizuho (NYSE:MFG) Securities maintained a positive outlook on shares of Accenture plc (NYSE:NYSE:ACN), raising the price target to $428 from $395 while reiterating an Outperform rating. Currently trading at $372.16, the stock sits near its 52-week high of $387.51, with analyst targets ranging from $323 to $450.
According to InvestingPro analysis, Accenture's current valuation suggests the stock is slightly above its Fair Value. This adjustment follows Accenture's announcement of robust first-quarter results for fiscal year 2025, showcasing accelerated constant currency (CC) growth across all end-markets.
The company also revised its full-year 2025 CC growth guidance upwards from the previous range of 3% to 6% to a new range of 4% to 7%, indicating an organic CC growth of 1% to 4%, an increase from the prior flat to 3%.
Accenture's first-quarter performance was particularly strong in certain segments, with year-over-year CC growth acceleration in Financial Services (FS) by 600 basis points to 4%, in Products by 400 basis points to 10%, and in Consulting by 300 basis points to 6%.
Moreover, the company has sustained momentum in Generation AI (GenAI), reporting $1.2 billion in bookings and approximately $500 million in revenue. With a market capitalization of $232.55 billion and an overall "GOOD" financial health rating from InvestingPro, Accenture demonstrates strong market leadership in the IT Services sector.
The firm's analysis suggests that Accenture is capturing more market share, an insight drawn from proprietary operating expense analysis. Mizuho anticipates a continued recovery in growth for Accenture, downplaying concerns about DOGE worries, which they believe are likely exaggerated due to the critical nature of the company's federal services.
In light of the significant foreign exchange (FX) changes, Mizuho has adjusted its earnings per share estimates for fiscal years 2025 and 2026, despite higher CC growth expectations. The revised price target reflects the analyst's confidence in the company's performance and market position. Trading at a P/E ratio of 29.15 with a projected revenue growth of 6% for FY2025,
Accenture maintains a strong dividend track record with 20 consecutive years of payments. For deeper insights into Accenture's valuation and growth prospects, InvestingPro offers comprehensive analysis with 13 additional ProTips and detailed financial metrics.
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