Accenture rating downgraded due to gloomy forecasts
2022.12.12 13:48
Accenture rating downgraded due to gloomy forecasts
Budrigannews.com – Accenture, Inc. on Monday, its price target was maintained at $268 per share and its rating was downgraded from Neutral to Underweight by analysts at Piper Sandler.
In a note, they informed investors that Accenture is being downgraded for 2023 due to a challenging tech spend environment. The company will report earnings for its most recent quarter on Friday.
“We anticipate management to be more cautious, despite the company’s potential positive 1Q results and reaffirmation of FY23 targets.” The analysts wrote, “1H estimates appear reasonable, but there is some risk to 2H.” Late-cycle IT Services and software companies have begun to suggest that technology will likely be under pressure in 2023. Businesses are looking to evaluate and measure the ROI of increased spending over the past two years as the pandemic pushes tech spending forward.”
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Likewise, the experts uncovered that the association’s checks with leaders “show that 2023 topics are ‘focusing on cost investment funds,’ ‘more limited term projects,’ ‘clear return for money invested,’ and so on.”
“Although we are downgrading ACN, we recognize that it has a robust client base, a diverse revenue base, and a sound business model. We choose one-year: -24% as a core large-cap tech holding versus -40%) for ACN. Additionally, ACN trading is 24.9 times NTM, compared to the 5-year average of 26.0 times,” they said.
