ARLINGTON, Va. - Accenture (NYSE:ACN) Federal Services (AFS), a subsidiary of global professional services company Accenture (NYSE: ACN), has been awarded a $90 million contract to support the Cybersecurity and Infrastructure Security Agency (CISA). Under the contract, AFS will provide data analytics and vulnerability research and analysis to help strengthen the cybersecurity posture of CISA's partners.
This new contract is aimed at aiding CISA's Vulnerability Management (VM) Insights Branch by delivering risk mitigation strategies and actionable guidance. AFS's role includes supporting the implementation of the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA), a significant legislative step in bolstering the nation's cyber defenses by mandating incident and ransomware payment reporting from covered entities.
The contract has a one-year base period with four additional option years. AFS CEO Ron Ash emphasized the importance of the work, stating it will assist in protecting the United States' critical infrastructure and enhancing cyber resilience. Paloma Prutsok, managing director at AFS and CISA Client Account Lead, expressed the team's eagerness to apply their global expertise to support the VM mission.
Accenture Federal Services has previously been entrusted with a $112 million task order from CISA in 2021 to protect Federal Civilian Executive Branch systems. Furthermore, earlier this year, AFS expanded its strategic alliance with Google (NASDAQ:GOOGL) Public Sector and launched a Cybersecurity Center of Excellence.
This engagement represents AFS's ongoing commitment to supporting federal agencies in addressing complex cybersecurity challenges. The information for this article is based on a press release statement.
In other recent news, Accenture has seen significant developments. Piper Sandler has adjusted Accenture's stock target to $329.00, maintaining a Neutral rating in anticipation of the company's upcoming earnings report. The firm expects Accenture to set initial fiscal year 2025 revenue targets in the range of 3-6%, including 2-3% from mergers and acquisitions. Mizuho also increased Accenture's price target to $365, maintaining an Outperform rating and predicting over 7% growth in FY25.
Baird, however, has maintained a Neutral stance on Accenture's shares with a steady price target of $350.00, noting potential challenges in fiscal year 2025. BofA Securities retains a Buy rating on Accenture's stock, suggesting that the company's decision to adjust the timing of promotions may be a strategic move to prepare for various revenue scenarios in fiscal year 2025.
Accenture has also made a strategic investment in Martian, a tech company known for its Large Language Model router, aiming to enhance Accenture's switchboard services. Additionally, the company has been actively participating in mergers and acquisitions, including investments in AI firm Martian, fintech firm EMTECH, and biotech firm Earli Inc. These are among the recent developments at Accenture.
InvestingPro Insights
As Accenture Federal Services (AFS) secures a significant contract with the Cybersecurity and Infrastructure Security Agency (CISA), it’s notable that the parent company, Accenture (NYSE: ACN), presents a robust financial and market presence. With a substantial market capitalization of $213.16 billion, Accenture stands as a leading entity in the IT Services industry, a fact that aligns well with AFS's expanded role in enhancing national cybersecurity infrastructure.
Accenture's financial stability is underlined by its Price/Earnings (P/E) ratio of 30.6, which showcases investor confidence in its earnings potential. This is further supported by its recent P/E ratio for the last twelve months as of Q3 2024, adjusted to 28.02, reflecting a continued belief in the company's profitability, which is also anticipated by analysts for the upcoming year. Additionally, the company's commitment to shareholder returns is evident with a notable dividend yield of 1.52% and a record of maintaining dividend payments for 20 consecutive years, with the last increase marking a 15.18% growth in dividends.
InvestingPro Tips for Accenture highlight the company's low price volatility and its status as a prominent player in its industry. These attributes may provide reassurance to investors and clients alike, as AFS undertakes critical cybersecurity initiatives for CISA. For those seeking deeper insights, there are 10 additional InvestingPro Tips available, including analyst earnings revisions and Accenture's historical return over the last decade, which can be found at https://www.investing.com/pro/ACN.
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