Goldman Sachs Reiterates “Neutral” Rating on Accenture; Boosts Price Target (ACN)
Goldman Sachs analysts maintained a "Neutral" rating on consulting and outsourcing firm Accenture plc ( ACN ) on Monday, but raised its price target.
The analysts see shares of ACN reaching $69, up from its previous valuation of $63. The new price target is a -1.7% downside to Friday's closing price of $70.21.
A Goldman Sachs analyst noted, "Our FY1Q revenue/EPS estimates of $7.28 bn (+2.9% reported; +5.6% CC basis)/$1.06 are unchanged. Although we retain our estimates, we are raising our 12-month price target to $69 (from $63) reflecting sustained multiple expansion in the Consulting and Outsourcing group (+14% YTD), and increased confidence in our EPS outlook for ACN given its strong capital allocation and an intact demand backdrop - note our recent tech growth forecast of 3% for 2013, up from 2% growth in 2012."
Accenture shares were up 28 cents, or +0.40%, during morning trading on Monday.
The Bottom Line
Shares of Accenture ( ACN ) have a 2.31% dividend yield, based on Friday's closing stock price of $70.21. The stock has technical support in the $63-$65 price area. The stock is trading near all-time highs.
Accenture plc ( ACN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.