Truist Securities initiated coverage of Accenture Inc. (ACN) with a 'Buy' rating and a $317 price target, reflecting confidence in the company's growth trajectory amid rising demand for digital and cloud services. The move underscores growing institutional interest in the global consulting leader.
- Truist initiated coverage of Accenture (ACN) with a 'Buy' rating
- Price target set at $317, implying ~15% upside from current levels
- ACN reported $59.8B in FY2024 revenue with 8.4% organic growth
- Operating margin of 26.3% and $8.2B in trailing 12-month free cash flow
- Focus on cloud, AI, and digital transformation as key growth drivers
- Expansion in U.S., Europe, and Asia-Pacific markets supporting long-term demand
Truist Securities has formally launched coverage of Accenture Inc. (ACN), assigning the stock a 'Buy' rating and establishing a $317 price target. This marks the first analyst coverage of ACN from Truist, signaling a strategic recognition of the company’s positioning in the evolving technology consulting landscape. The price target implies approximately 15% upside from ACN’s current trading range, suggesting strong confidence in near-term performance and long-term strategic execution. The firm highlighted Accenture’s increasing penetration in high-growth areas such as cloud transformation, artificial intelligence integration, and business process outsourcing. ACN reported revenue of $59.8 billion in fiscal year 2024, with organic growth of 8.4%, and continues to expand its global delivery network. Truist noted that ACN’s enterprise client base, including Fortune 500 companies, is actively outsourcing digital initiatives, a trend that supports recurring revenue and margin stability. Key metrics cited by Truist include ACN’s trailing 12-month free cash flow of $8.2 billion and a 26.3% operating margin, both well above industry averages. The firm also emphasized ACN’s expanding presence in the U.S., Europe, and Asia-Pacific, where digital adoption is accelerating across sectors including financial services, healthcare, and manufacturing. The company’s recent investments in AI platforms like Accenture Applied Intelligence further strengthen its service differentiation. The initiation of coverage and price target are expected to influence asset allocation decisions among institutional investors. Analysts at firms tracking large-cap tech services stocks are likely to reassess ACN’s valuation relative to peers such as Cognizant (CTSH) and Tata Consultancy Services (TCS). The move may also prompt increased trading volume and tighter analyst consensus around ACN’s earnings outlook for fiscal 2025.