Accenture: UBS upgrades to buy
(CercleFinance.com) - UBS announced on Friday that it had upgraded its recommendation on Accenture shares from 'neutral' to 'buy', with a target price maintained at $400.
In a research note, the broker says it anticipates an expansion in the valuation multiples on which the stock is trading 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, the analyst explains.
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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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
In a research note, the broker says it anticipates an expansion in the valuation multiples on which the stock is trading 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, the analyst explains.
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.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.