Accenture (ACN) was in focus on Tuesday after investment firm UBS labeled the technology consulting firm a Top Pick.
“[We’re] bullish as [the] Gen AI optionality, strength in alliances [~60% revenue] drives revenue + margins,” UBS analyst Kevin McVeigh wrote in a note to clients. “Cloud [50%+ revenue] stands to continue benefiting from AI innovation, as legacy systems are revamped to leverage AI capabilities. We expect Gen AI [~10% revenue] momentum to continue to accelerate, as companies move to multi-year implementation.” McVeigh has a Buy rating and a $320 price target on Accenture.
The firm also mentioned that it likes SS&C Technologies (SSNC) and Thomson Reuters (TRI) for 2026, as it has a Buy rating on both and price targets of $112 and $215, respectively, on the pair.
“2026 begins with IT spending stabilizing and generative AI continuing to reshape infrastructure, cloud migration, and application software investment,” McVeigh added. “While employment and rapid transformation remain key challenges, we see specialized players leveraging vertical data and domain-specific models to build moated solutions. M&A is expected to be active with transactions underscoring intrinsic value across the sector. Amid this evolving landscape, companies that can swiftly shift strategies and harness emerging technologies are poised to capture outsized growth, while those slow to innovate risk falling behind.”
