BofA Securities has expressed continued confidence in Accenture plc (NYSE: NYSE:ACN), maintaining a Buy rating and a price target of $365.00.
The firm acknowledged Accenture's strong fourth-quarter performance, noting bookings approximately 9% higher than Wall Street expectations, largely driven by Managed Services. Revenue growth in constant currency was also highlighted as being near the upper end of the company's guidance.
Accenture's forecast for fiscal year 2025 anticipates constant currency revenue growth of 3-6%, a projection that was slightly below BofA's anticipated 4-7% range.
The firm is looking forward to additional details that will be provided in the morning call, particularly concerning the impact of mergers and acquisitions and the assumptions underlying discretionary spending.
BofA Securities suggested that if the lower end of Accenture's guidance indicates a decline in organic revenue growth, the company's shares might experience a downturn on the same day. However, they noted that the initial guidance might carry additional conservatism due to the transition to a new Chief Financial Officer.
In other recent news, Accenture has been the subject of several significant developments. The company recently announced a $4 billion share buyback program following a strong fourth-quarter performance.
Accenture's revenue for the quarter was $16.41 billion, surpassing market expectations, with new bookings reaching $20.1 billion. Among these, generative AI bookings contributed significantly, adding $1 billion to the total.
Mizuho Securities maintained an Outperform rating on Accenture, highlighting the company's constant currency growth projection of 3% to 6% for fiscal year 2025. Meanwhile, BMO Capital kept its Market Perform rating, anticipating positive outcomes in bookings and revenue guidance due to favorable year-over-year comparisons and the impact of mergers and acquisitions.
Accenture Federal Services, a subsidiary of Accenture, was awarded a $90 million contract to support the Cybersecurity and Infrastructure Security Agency, providing risk mitigation strategies and actionable guidance.
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