Can Accenture plc (ACN)’s AI Push Drive the Next Leg of Growth?

Accenture plc (NYSE:ACN) is among the most undervalued tech giants to buy according to hedge funds. As of December 26, Accenture plc (NYSE:ACN) has a rating of ‘Buy’ or equivalent from slightly more than half of the analysts covering the stock. While the target price ranges from $205 to $330, the median target of $300 implies an upside potential of 11.12%. On December 19, Surinder Thind, an analyst at Jefferies, reaffirmed a ‘Hold’ rating on the stock, with a price target of $270.

Kevin McVeigh from UBS, among the analysts recommending the stock, lifted the price target on ACN to $320 from $315 and maintained a ‘Buy’ rating on December 19, according to TheFly. The analyst highlighted the company’s solid position in artificial intelligence and a steady demand environment.

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UBS noted that the company’s Advanced AI achieved $1.1 billion in revenue in the first quarter, marking a 120% YoY surge. Similarly, Advanced AI bookings reached $2.2 billion, 76% higher than last year. Accenture is poised to scale generative AI efforts for clients, the analyst added.

What’s even more interesting is Accenture’s expansion into data center professional services, a market that is anticipated to double in size by 2030. UBS emphasized the company’s top 10 alliance partnerships, which it believes will enhance Accenture plc’s (NYSE:ACN) overall performance.

On the same day, RBC Capital raised the price target on Accenture plc (NYSE:ACN) to $295 from $285 and reaffirmed an ‘Outperform’ rating, following its first-quarter results, as reported by The Fly. The firm is optimistic about Accenture’s “increasingly evolving AI partnership ecosystem,” which will likely be a growth catalyst for the company.

Accenture plc (NYSE:ACN) is an Ireland-based provider of strategy, consulting, technology, and operations services. Incorporated in 1951, the company offers security, an intelligent platform, software engineering, and automation and global delivery services, among others.

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Disclosure: None.