Truist Starts Coverage on Accenture (ACN) With $317 Price Target

Accenture plc (NYSE:ACN) is one of the AI Stocks Gaining Attention on Wall Street. On January 6, Truist Securities analyst Arvind Ramnani initiated coverage on the stock with a “Buy” rating and a $317 price target. The firm deems ACN as a as a compelling (but not riskless) investment opportunity to benefit from enterprise modernization trends, particularly GenAI.

Analysts believe that ACN’s business mix should support mid-single-digit growth and stable margins over a multi-year time horizon. This is despite current stock valuation pricing in concerns about existing business being cannibalized by GenAI.

"The stock trades at a material discount to its historical average largely due to GenAI cannibalization of existing business. We think patient investors will be rewarded given ACN's strategic partnerships with the leading frontier labs, broader GenAI ecosystem, and track-record in cannibalizing legacy revenue.” -Ramnani and his team.

Neverthless, strategic partnerships with leading frontier labs and the broader GenAI ecosystem serve as positive factors for the company. Accenture also holds a track record for successfully cannibalizing legacy revenue streams, which is an indication that patient investors would likely be rewarded over time.

Accenture plc (NYSE:ACN) offers strategy and consulting services.

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.