Commerzbank sees 25% return potential in Accenture shares, rates 'Strong Buy'

Investing.com - Commerzbank advised buying shares of international consulting company Accenture (NYSE:ACN) in a research report released Thursday. The bank rates the securities a 'Strong Buy' and issues a price target of $380. Currently, the company's shares are trading at a price of around $302, which corresponds to a potential return of around 25% at the target price. Analysts at Commerzbank see the $230 mark as a hedge.

In a note to clients, the experts emphasized that despite the current economic headwinds, demand for consulting services, particularly in Accenture's area, is expected to increase. While economic headwinds are still leading to investment restraint on the part of customers, unabated demand should soon boost general demand for consulting services and, more specifically, Accenture's order book, the customer note stated.

Commerzbank experts cited several reasons for buying Accenture shares. These include a diversified consulting and services portfolio with international reach, high brand recognition, and strong customer loyalty. They also expect additional new business potential in the coming quarters, mainly due to catch-up effects on the part of customers. Another positive factor is the promising integration of generative artificial intelligence into Accenture's service product portfolio, where initial successes are already visible.

Despite the positive forecasts, Commerzbank analysts point to three risks. First, they say, the intensity of competition in the industry is high, and the competitive situation is heterogeneous. Second, macroeconomic uncertainties and economic headwinds could dampen demand. Finally, there is a risk that high personnel and organizational expenses and overpriced acquisitions could lead to financial burdens.

(Translated from German)