Accenture has declined more than 50% year-to-date and around 34% since the start of June, but Wall Street still expects the stock to rebound with a 12-month average analyst price target reflecting more than 45% upside from current levels. The share price was hit by sector-wide margin concerns and fell further after management narrowed its full-year local-currency revenue growth forecast from a range of 3% to 5% to 3% to 4%. On June 15, Morgan Stanley downgraded the stock from Overweight to Equal Weight and cut its price target sharply to $177 from $240, citing that expected rationalization of AI spending hasn't benefited Accenture, the interest rate environment is less supportive for client budget growth, and future acquisitions are expected to be increasingly expensive.
Accenture plcAnalyst price target implies 45% upside, but management narrowed revenue guidance and Morgan Stanley downgraded the stock.
Morgan Stanley