Piper Sandler upgrades Accenture after Q4 beat, robust Q1 outlook
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Accenture (NYSE:ACN) was upgraded by Piper Sandler to Overweight, after the firm beat its fiscal fourth quarter results expectations and issued a Q1 revenue outlook that topped estimates.
“While overall FY25 guidance was in-line with our expectations, we are bullish on the underlying metrics,” the analysts said.
The Irish company had also noted that generative AI new bookings were $1B for the fourth quarter, and reported new bookings for the fourth quarter of $20.1B.
Piper Sandler also attributed its upgrade to robust bookings and a significant step up in hiring.
“The setup for FY25 seems attractive as full-year guidance assumes no improvement beyond 1Q,” the analysts said.
Piper Sandler believes, owning ACN is attractive, given the improving top-line metrics, a conservative guide and since it is a key beneficiary of GenAI related work.
Shares in the company were up 4.7% and have been up 0.6% since the start of the year.