.July 19, 2024 09:59:00 AM

UBS analysts upgraded Accenture (NYSE:ACN) to Buy from Neutral, with a new price target of $400. They anticipate accelerated revenue growth driven by AI opportunities, despite concerns about IT spending pace. Accenture’s shift towards cloud services, digital transformation, cybersecurity, and Generative AI is expected to support higher and more sustainable growth. The analysts noted a positive trend for revenue acceleration with Accenture’s top 10 alliance partners, highlighting the potential of Generative AI. GenAI bookings reached $2 billion by Q3/24, compared to $300 million in fiscal year ending August 2023. Clients are expected to accelerate GenAI adoption, potentially scaling faster than Accenture’s cloud business.