HSBC Begins Coverage of Accenture (ACN) Stock with Reduce Rating

Accenture plc (NYSE:ACN) is one of the Best 52-Week Low Blue Chip Stocks to Buy Now. On July 28, HSBC began coverage of the company’s stock with a “Reduce” rating and a price objective of $240, as reported by The Fly. As per the firm, the market is underestimating the AI disruption risk facing Accenture plc (NYSE:ACN). As per the analyst, early successful generative AI use cases might significantly boost employee productivity in the company’s core offerings, which can translate into pricing pressure over time. Notably, Accenture plc (NYSE:ACN) has agreed to acquire Maryville Consulting Group.

A team of data experts gathered around a computer monitor analyzing customer data.

As per Keith Boone, Tech Strategy & Advisory Americas lead at Accenture plc (NYSE:ACN), the acquisition happens to be a strategic step in the company’s ongoing commitment to expanding its technology and digital transformation capabilities to support clients in extracting maximum value from their technology investments. Maryville Consulting Group’s strong expertise in tech strategy and digital operations, along with the healthy partnerships and client relationships, would enhance its ability to help clients use technology as a competitive advantage and drive technology value to achieve business goals.

Aristotle Capital Management, LLC, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“Accenture plc (NYSE:ACN), the global IT services and consulting firm, was one of the largest detractors during the period. The company reported revenue at the top end of its guided range, supported by solid booking, particularly in large-scale transformational projects from major corporate clients. Despite these results, shares declined as investor sentiment was impacted by continued client caution amid heightened global uncertainty, including concerns around tariffs and consumer sentiment, as well as the U.S. administration’s initiative to streamline federal operations, which could result in canceled or delayed government contracts. We believe Accenture is well-positioned to support the federal government’s efficiency goals through its expertise and proven track record in delivering innovative, cost-effective solutions. Accenture has also continued to see traction in emerging areas such as generative AI, securing $1.4 billion in new bookings and generating approximately $600 million in related revenue during the quarter. Short-term fluctuations in consulting demand are not unusual, and we remain confident that Accenture’s global scale and deep expertise make it well-positioned to continue to provide solutions and deepen its partnerships with many of the world’s largest companies as they continue to implement increasingly sophisticated technologies.”

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Disclosure: None. This article is originally published at Insider Monkey.