Accenture’s Q4 results, outlook offer up ‘better visibility’ into growth: Morgan Stanley
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- Accenture’s (NYSE:ACN) fourth-quarter results and guidance topped estimates, leading Morgan Stanley to highlight the “better visibility” into the growth due to longer duration public service deals.
- “Continued momentum in the Health & Public Service vertical give management confidence in reaching the higher end of 0-3% y/y cc organic growth guidance,” analyst James Faucette wrote in an investor note.
- And while the discretionary spending environment is unchanged from where it was, longer-term projects are still being worked on, as clients keep working to improve costs, Faucette added. Faucette reiterated his Equal-Weight rating and upped his price target to $335 from $300 after the results.
- Additionally, the “relaxed pace” of mergers should offer up a near-term relief on Accenture’s cash flow, though it should revert to a “normalized pace” of M&A going forward, Faucette added.