Barclays Capital analyst Darrin Peller today upgraded Accenture (ACN) to Overweight from Equal Weight, setting a new price target on the IT consulting services firm of $52, up from $43.
Peller now sees EPS for the August 2010 fiscal year of $2.65, up from $2.63; for FY 2011 the analyst sees $3.08, up from $3.02.
“Over the past few months, several data points have given us greater confidence in a rebound in discretionary spending, including the company’s improved consulting bookings in every operating group and better quality pipeline,” as well as strong earnings from rivals like IBM (IBM) and Infosys (INFY), Peller writes. “While ACN is a late cycle name, we believe the company will begin to outperform as clients shift from cost-cutting mode to investing for growth.”
Peller contends the company’s guidance for 12%-15% EPS growth in 2011 could prove to be conservative.
ACN is up 73 cents, or 1.7%, to $44.25.
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