For Immediate Release
Chicago, IL - May 24, 2012 - Zacks.com announces the list of
stocks featured in the Analyst Blog. Every day the Zacks Equity
Research analysts discuss the latest news and events impacting
stocks and the financial markets. Stocks recently featured in the
Magna International Inc.
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Here are highlights from Wednesday's Analyst
Accenture, Salesforce.com Extend Ties
Information technology (IT) services provider
) is set to strengthen its long-standing business relationship with
the ace cloud vendor
). In an attempt to expand its breadth of cloud offerings (which
will be developed by Salesforce) via its global delivery network,
Accenture recently announced that it will open new Cloud Centers of
Excellence across the U.S. and U.K.
The relationship between Accenture and Salesforce goes way back
to 2004, when the former identified the relevance of cloud
computing for businesses and tried to deliver suitable services in
conjunction with Salesforce. Accenture delivers various
Software-as-a-Service (SaaS) solutions developed by Salesforce.
The duo's combined capabilities produced a number of
management-oriented solutions that have helped organizations to
achieve business excellence and cost optimization in the areas of
customer service and support, sales force automation, and supply
chain and human resources management.
Accenture and Salesforce.com has transformed the way of handling
customer service through salesforce.com's "Service Cloud 3." This
application helps organizations to identify and solve customer
issues on a timely basis. Not only this, but respective customers
are provided with the option of communicating their problems via
phone, email, or even via popular social networking platforms such
as Twitter and
Accenture affirmed that Salesforce's solutions drive most of the
growth at its SaaS business. There is no doubt that the new cloud
centers will attract new businesses through the development of
Apart from this, the company announced its intention to open an
Innovation Center in London, which will showcase any upcoming
solution jointly developed by the two. This would boost
cloud-consciousness and create a prospective market for the
solutions, in our view.
Accenture's cloud venture is appreciating, which shows that the
company's fundamentals will remain solid even in the face of
economic uncertainty. We notice that Accenture is keen on expanding
its business in Europe too.
In its second quarter 2012 ending February, Accenture generated
roughly 40.0% of its revenue from Europe. In fact, the contribution
from European increased 8.0% year over year. The statistic is quite
encouraging, especially at a time when Europe is in the midst of
This apart, we see continuous product launches and deal wins as
positives. However, low-margin government deals, foreign exchange
fluctuations and stiff competition from
) keep us on the sidelines.
Currently, Accenture has a short-term Hold rating, denoted by
the Zacks #3 Rank.
Magna Upgraded to Outperform
We have upgraded our long-term recommendation on
Magna International Inc.
) to Outperform from Neutral. The company is likely to reap
benefits from the new emission standard in the U.S., which will
boost demand for new auto parts and other components.
The company's first quarter 2012 earnings per share of $1.46,
surpassed the Zacks Consensus Estimate and a year-ago earnings of
$1.30 by 12%. The earnings escalated owing to higher production and
sales volumes along with profits generated from programs launched
Revenues swelled 7% year over year to $7.7 billion, beating the
Zacks Consensus Estimate of $7.4 billion. The increase in revenues
was driven by an increase in production and sales in North America,
Europe and in the Rest of the World.
Magna is extending its global footprint through significant
acquisitions and expansions in recent times. The company, in order
to pursue growth opportunities in emerging markets, has entered
into a joint venture; MCC Wuhu Exteriors, with Changshu Automotive
Trim Co. (34%) and Chery Tech. (15%) along with exterior and
interior operating unit (51%) in China. It also acquired a
300,000-square-foot injection molding and painting facility in
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ACCENTURE PLC (ACN): Free Stock Analysis Report
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