The only significant news item about Accenture (NYSE: ACN) Friday was a positive one -- a top investment bank upgraded its recommendation on the stock and cranked its price target higher. The shares experienced a modest rally as a result, ultimately closing the day a little over 1% higher. That was high enough to beat the 0.3% rise of the S&P 500 index.
It's gold, says Goldman
The finance sector mainstay in question was Goldman Sachs. Well before market open, its analyst, James Schneider, flipped his recommendation on Accenture stock to buy from his preceding neutral. His new price target on the shares is $420 apiece, where formerly it was $370.
According to reports, Schneider pointed out that the company is the top provider in the world for its specialty, IT services. Its time is coming, the pundit believes, as cyclical headwinds from client industries like finance and healthcare are starting to fade. In fact, Accenture is one of the businesses best positioned to benefit from this development.
The analyst also touched on the company's embrace of artificial intelligence (AI), writing that it has excellent generative AI capabilities. As such, it's sure to be a partner of choice for businesses wanting to expand their involvement with this white-hot technology.
Open those coffers
Accenture has a very wide and broad client base, so it might be a bit over-optimistic to believe that higher budgets in a few will juice Accenture's fundamentals. Yet a rise in spending on IT services by various types of businesses is entirely realistic to expect, especially in regards to AI. Accenture doesn't feel like a screaming buy to me, but it's certainly a stock worth keeping an eye on.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $376,143!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,028!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $494,999!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of December 2, 2024
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Accenture Plc and Goldman Sachs Group. The Motley Fool recommends the following options: long January 2025 $290 calls on Accenture Plc and short January 2025 $310 calls on Accenture Plc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
