Accenture: share price rises, UBS upgrades to buy

(CercleFinance.com) - Accenture shares are up nearly 1.
3% after UBS upgraded its recommendation.

UBS announced on Friday that it had upgraded its recommendation on Accenture shares from 'neutral' to 'buy', with the price target maintained at $400.

In a research note, the research firm said it expects the valuation multiples on which the stock is trading to expand against the backdrop of accelerating revenues from AI.

While we understand the concerns surrounding the evolution of technology spending, we believe that the shift in the mix (in favor of cloud, digital transformation, cybersecurity and now generative AI) should generate higher and more sustainable growth", explains the analyst.

UBS adds that sales trends at Accenture's top 10 partners suggest, in its view, an acceleration in sales growth over the next 12 months, which leads it to believe that the market has yet to fully embrace the promise of AI.

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