Accenture (ACN) may raise the low end of its fiscal 2026 revenue growth outlook, though the move would likely reflect a more secure growth floor partly supported by acquisitions rather than stronger demand, Morgan Stanley said in a Monday note to clients.
The brokerage said the low end of guidance could rise to between 3% and 5% from 2% to 5%. Its checks show IT budgets and bookings have yet to improve as expected and it sees fiscal Q2 bookings growth below Street estimates.
Morgan Stanley kept its fiscal 2026 adjusted earnings per share estimate for Accenture unchanged at $14.18 but lowered its fiscal 2027 forecast to $14.98 from $15.22, citing expectations for a slower growth recovery.
The analysts said recent managing director-level departures at Accenture could raise the chances of another restructuring announcement when the company reports fiscal Q2 results Thursday.
Morgan Stanley maintained its overweight rating on the stock and lowered its price target to $240 from $320.
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