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).

  1. 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.

  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.

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