Accenture Positions AI as ‘Strategic Differentiator’—Poised to Capitalize on Surging Demand

Tech consulting giant bets big on artificial intelligence as clients scramble for competitive edge.

No more ‘wait-and-see’—corporate boards now demand AI roadmaps yesterday. Accenture’s ready to sell them the shovel during this gold rush.

Bonus jab: Because nothing says ‘innovation’ like charging Fortune 500 companies seven figures to install ChatGPT wrappers.

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Hard to Replicate

Maggie Nolan, analyst at William Blair, said the professional services company’s global presence and scale are “strategic differentiators” that are not easily replicated. She added that the company remains a market leader in developing and investing in next-generation capabilities.

Nolan, who has an Outperform rating and $285.37 price target on the stock, said she was confident that Accenture was capable of capitalizing on demand for AI and relatedservices, “setting up clients to prepare for this next wave of transformation.”

Accenture reported $1.5 billion in GenAI bookings in its third quarter, up nearly 67% year-over-year, including strong demand for large transformational deals, as evidenced by 30 new clients in the fiscal third quarter with bookings greater than $100 million.

Reinvention Time

She said that its new business model called “Reinvention Services”which will merge all service lines across strategy and consulting, technologyand operations into one unit, is another plus. She expects it to drive easier and faster adoption of data and AI solutions.

“We remain positive on Accenture’s story and the intrinsic value, given a structurally strong business, stable balance sheet, and positive free cash flows that are supplemented by a comprehensive capital return program that includes share repurchases and dividends,” Nolan said.

However, Bryan Bergin, analyst at TD Cowen, reduced his price target on the stock to $342 from $347 due to potential Doge growth headwinds.

Is ACN a Good Stock to Buy Now?

On TipRanks, ACN has a Moderate Buy consensus based on 10 Buy and 6 Hold ratings. Its highest price target is $395. ACN stock’s consensus price target is $346.80 implying an 19.89% upside.

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