Can Accenture plc (ACN)'s AI Push Drive the Next Leg of Growth?

Accenture plc (NYSE:ACN) is among the most undervalued tech giants to buy according to hedge funds. As of December 26, Accenture plc (NYSE:ACN) has a rating of ‘Buy’ or equivalent from slightly more than half of the analysts covering the stock. While the target price ranges from $205 to $330, the median target of $300 implies an upside potential of 11.12%. On December 19, Surinder Thind, an analyst at Jefferies, reaffirmed a ‘Hold’ rating on the stock, with a price target of $270.

Kevin McVeigh from UBS, among the analysts recommending the stock, lifted the price target on ACN to $320 from $315 and maintained a ‘Buy’ rating on December 19, according to TheFly. The analyst highlighted the company’s solid position in artificial intelligence and a steady demand environment.

UBS noted that the company’s Advanced AI achieved $1.1 billion in revenue in the first quarter, marking a 120% YoY surge. Similarly, Advanced AI bookings reached $2.2 billion, 76% higher than last year. Accenture is poised to scale generative AI efforts for clients, the analyst added.

What’s even more interesting is Accenture’s expansion into data center professional services, a market that is anticipated to double in size by 2030. UBS emphasized the company’s top 10 alliance partnerships, which it believes will enhance Accenture plc’s (NYSE:ACN) overall performance.

On the same day, RBC Capital raised the price target on Accenture plc (NYSE:ACN) to $295 from $285 and reaffirmed an ‘Outperform’ rating, following its first-quarter results, as reported by The Fly. The firm is optimistic about Accenture’s “increasingly evolving AI partnership ecosystem,” which will likely be a growth catalyst for the company.

Accenture plc (NYSE:ACN) is an Ireland-based provider of strategy, consulting, technology, and operations services. Incorporated in 1951, the company offers security, an intelligent platform, software engineering, and automation and global delivery services, among others.

While we acknowledge the potential of ACN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.