Accenture plc Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for Accenture plc (ACN).
Give me a comprehensive price target analysis for Accenture plc (ACN).
Below is a comprehensive, data-driven analysis for Accenture plc (ACN) as of 2025-10-10, with horizontal price-target trendlines drawn for Low, Median, and High targets and a structured investment narrative.
Drawing update:
- Low Target (205.00): color #1E90FF (DodgerBlue)
- Median Target (285.00): color #32CD32 (LimeGreen)
- High Target (330.00): color #FF4500 (OrangeRed)
Line extensions: Each line is plotted from 2025-10-10 to 2025-11-09 (approximately 30 days into the future).
- Price Target Trendlines (Horizontal)
- Low Target: 205.00
- Drawn from 2025-10-10 to 2025-11-09
- Median Target: 285.00
- Drawn from 2025-10-10 to 2025-11-09
- High Target: 330.00
- Drawn from 2025-10-10 to 2025-11-09
Tabs showing the drawn lines exist in the chart with the colors specified above.
- Executive Summary
- Investment thesis: ACN trades at a solid premium-to-growth multiple with a strong, diversified services portfolio and a track record of margin expansion and cash generation. The stock’s risk-reward leans constructive given an attractive forward multiple, improving EPS trajectory, and ongoing demand for digital/tech-enabled outsourcing services.
- Base-case price trajectory: Modest near-term upside toward the 270s to mid-280s on improving earnings momentum and steady demand, with longer-term upside toward the high-280s to low-300s if earnings revisions persist and multiple expansion occurs.
- Key takeaway: The stock is actionable for investors seeking quality large-cap IT services exposure with balanced risk given mid-single-digit revenue growth drivers and consistent profitability.
- Fundamental Analysis
- Valuation and scale
- Current price: 252.04
- Market cap: 156.8B
- Enterprise value: 155.1B
- Trailing P/E: 20.76
- Forward P/E: 17.91
- Price-to-Book: 5.03
- PEG: not provided
- Profitability and returns
- Net profit margin: 11.02%
- Gross margin: 31.91%
- Operating margin: 15.15%
- ROE: 25.51%
- ROA: 11.17%
- Capital structure and liquidity
- Debt to equity: 25.38%
- Total cash: 11.48B
- Total debt: 8.18B
- Dividend yield: 2.58% (five-year avg: 1.44%)
- Leverage and cash generation: The balance sheet shows modest net debt position and ample cash to fund operations, buybacks, and strategic investments. The company’s cash generation supports dividend reliability and potential strategy upgrades.
- Earnings Analysis
- Recent Earnings Summary (latest quarter shown: 2025-08-31)
- Revenue: 17.7279B
- Gross profit: 5.82665B
- Operating income: 2.98278B
- EBITDA: 3.31075B
- Net income (continuing ops): 2.19750B
- Diluted EPS: 2.25; Basic EPS: 2.27
- Tax rate (calculated proxy): around 21–23% in periods shown
- Note: The data shows a volatile quarterly EPS pattern across recent quarters (e.g., 2.25 in 2025-08-31 vs 3.49 in 2025-05-31 vs 2.82 in 2025-02-28). This reflects quarter-to-quarter variation, likely due to mix and seasonality in projects, but normalized metrics provide a steadier longer-term picture.
- EPS Trend
- Current (0q): 3.73762
- +1q: 2.97314
- 0y (TTM proxy): 13.8457
- +1y: 14.96757
- The near-term EPS has shown a modest uptick in the latest quarter, with higher annualized trends suggesting ongoing earnings power when normalized (consistent cash generation and margin discipline).
- EPS Revisions
- 0q: Up last 7d: 8; Up last 30d: 9; Down last 30d: 4; Down last 7d: 5
- +1q: Up last 7d: 9; Up last 30d: 5; Down last 30d: 8; Down last 7d: 7
- 0y: Up last 7d: 14; Up last 30d: 13; Down last 30d: 8; Down last 7d: 6
- +1y: Up last 7d: 9; Up last 30d: 5; Down last 30d: 8; Down last 7d: 7
- Interpretation: Analysts have generally been revising EPS estimates upward over the longer horizon (0y, +1y), with more modest near-term revisions. This supports a constructive view on earnings potential over the next 12 months, albeit with some short-term volatility.
- Technical Analysis
- Price action and key levels
- Current price: 252.04
- 50-day moving average (latest): around 248–251 range depending on the most recent data point; latest MA value near 248. The price sits modestly above the 50-day MA, signaling a bullish bias with some resilience around the near-term support zone.
- RSI (14) recently around mid-60s (latest reading ~64.4), indicating room to run but not overbought.
- MACD (12,26,9): Recently crossed or hovered near the zero line, with the latest value showing a small positive MACD (0.1) versus a negative prior read, suggesting early bullish momentum, supported by the movement of the signal line.
- Moving averages and momentum
- The 50-day MA is below the current price, consistent with a positive short-term trend. If price sustains above the 50-day line and advances, it could push toward the 270–285 zone and potentially challenge the 285 target.
- RSI and MACD readings align with a constructive but not extreme momentum, favoring further upside but with defensive risk controls near resistance.
- Implication: Technicals support a cautious bullish bias with an upside path toward the mid- to high-260s and into the 280–300s if earnings revisions stay positive and market sentiment improves.
- Analyst Consensus & Price Targets
- Price targets (consensus data)
- Current price: 252.04
- Number of analyst opinions: 22
- Target Low: 205.00
- Target Median: 285.00
- Target High: 330.00
- Target Mean: 278.3191
- Interpretation: A substantial portion of analysts place upside potential. The median target of 285 and high of 330 imply modest to strong upside from current levels, with the mean around 278 suggesting a balanced optimism but not extreme confidence. The 22-analyst coverage provides a reasonably robust gauge of sentiment.
- Price Target Analysis (Short, Mid, Long-Term)
- Short-Term (3 months)
- Target: 285 (median)
- Justification: Near-term momentum is constructive; price is above the 50-day MA, RSI around 64 indicating room for upside, and EPS revisions over the medium term have positive lean data. The mean target close to 278 with a median of 285 provides a practical near-term upside scenario in the 6–12% range.
- Key drivers: Stabilizing macro environment for IT services, solid pipeline in digital, margin discipline, continued free-cash-flow generation, and favorable EPS revisions profile.
- Mid-Term (12 months)
- Target: 300 (representative midpoint within the consensus-high range)
- Justification: If earnings revisions stay positive and the market re-rates given forward earnings growth and relatively attractive forward P/E (near 17.9x), a move toward the 300 area is plausible. Additionally, a continued healthy balance sheet, buyback cadence, and dividend support could lift the multiple.
- Key drivers: Sustained revenue growth in consulting services, margin stabilization, stronger cash flow, potential multiple expansion, and continued buyback activity.
- Long-Term (3+ years)
- Target: 330 (high target)
- Justification: The high target at 330 reflects a scenario where earnings growth accelerates, market multiple expands modestly, and accretive strategic initiatives (e.g., geographic expansion, IP-enabled services, or faster growth segments) materialize. The long-term target assumes resilience in demand for digital-transformation services and continued efficiency gains.
- Key drivers: Structural demand for digital/Cloud-enabled outcomes, improved operating leverage, sustained free cash flow generation, and potential strategic acquisitions or partnerships that broaden service capabilities.
- Key Risks & Opportunities
- Key Risks
- Macro deceleration reducing enterprise IT spending and transformation timelines.
- Competitive intensity from large IT services peers and boutique consultancies.
- Earnings volatility due to project mix and seasonality; potential reliance on large deals.
- Global FX and cross-border execution risk impacting margins.
- Key Opportunities
- Upside from digital, cloud migration, AI-enabled services, and data analytics growth.
- Operating leverage from scale, cost controls, and efficiency programs.
- Capital return support from dividends and share buybacks, which can be favorable in a range-bound market.
- Positive EPS revisions trend, with analysts broadly revising upward in the 0y to +1y horizon.
- Investment Recommendation
- View: Hold to Light-Buy depending on risk tolerance and time horizon
- Short-term (3–6 months): Cautious upside with a bias toward the 270–290 range; probability of breaking to 285 with constructive earnings guidance.
- Medium-term (9–12 months): Potential move toward 290–310 if earnings revisions persist and multiple expansion occurs.
- Long-term (2–3+ years): If ACN sustains growth in digital transformation services and generates consistent cash flow, a path toward 330 or above is plausible.
- Time horizon alignment: The stock is suitable for investors seeking quality, low-to-mid risk exposure in the large-cap IT services space, with upside potential in line with EPS revisions and macro demand for transformation services.
- Expected return potential (12–24 months): Roughly 10–30% depending on the path of EPS revisions and multiple expansion; downside risk remains if macro or execution issues arise.
Appendix: Quantitative Reference Tables
- Current fundamentals
- Current price: 252.04
- Market cap: 156.8B
- EV: 155.1B
- P/E (TTM): 20.76
- Forward P/E: 17.91
- P/B: 5.03
- Dividend yield: 2.58%
- ROE: 25.51%
- ROA: 11.17%
- Net Margin: 11.02%
- Gross Margin: 31.91%
- Operating Margin: 15.15%
- Debt/Equity: 25.38%
- Cash: 11.48B; Debt: 8.18B
- Analyst targets
- Target Low: 205
- Target Median: 285
- Target High: 330
- Target Mean: 278.32
- Coverage: 22 analysts
Notes on Earnings and Revisions
- The earnings data shows a mix of quarterly EPS results with a generally positive longer-term trend in EPS growth and a favorable tilt in revisions (0y and +1y revisions more often upward than downward). This supports modest optimism for sustained earnings growth, which can underpin multiple expansion over time, assuming macro stability.
Key Data Sources (as provided)
- Price and fundamental data: current price, market cap, EV, P/E, P/B, ROE, margins, debt/cash, dividend yield.
- Analyst targets: current price, number of opinions, target high/low/median/mean.
- Earnings summary: quarterly income statement components (revenue, gross profit, operating income, EBITDA, net income, EPS) for recent quarters.
- EPS Trend: quarterly and annual expected trends (current, next quarter, trailing/forward).
- EPS Revisions: counts of up revisions and down revisions across near-term and longer horizons.
- Technical indicators: 50-day MA data, RSI, MACD per the provided time series.
If you would like, I can:
- Extend the analysis to include a sensitivity table showing how ACN’s target prices shift with different EPS growth scenarios.
- Produce an engineering-style chart summary (textual) of the RSI/MACD trajectory with a narrative on potential breakout/breakdown patterns.
- Update the price-target lines if you provide alternate price targets or adjust the horizon (e.g., 6 months, 18 months).
Disclaimer: All numbers reflect the data you provided. Real-time prices and consensus can shift; please verify with current market data before trading.