Morgan Stanley Downgrades Accenture to Hold
Morgan Stanley lowered its rating on Accenture to hold, setting a new price target, a 37.22% upside from the current price.
Key Points
- On June 15, Morgan Stanley downgraded Accenture to a hold rating with a new target price of $177.
- Morgan Stanley's $177 price target implies 37.22% upside from Accenture plc's ($ACN) current $128.99 share price.
- Accenture's stock is trading at $170.28, with a market cap of $104.8 billion and a P/E ratio of 14.
- Insider buying activity includes CEO Julie Spellman Sweet purchasing 216 shares on June 5.
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On June 15, 2026, Morgan Stanley analyst James Faucette downgraded Accenture plc (NYSE: ACN) from a previous rating to hold, setting a new price target of $177. This move reflects a more cautious stance on Accenture's stock, which was trading at approximately $170.28 at the time.
Other Institutional Activity in Accenture
Several institutional investors have recently adjusted their holdings in Accenture. BlackRock, Inc. increased its position by 1,069,810 shares, bringing its total to 57,140,737 shares valued at about $11.33 billion. State Street Corp added 546,156 shares, reaching a total of 28,810,831 shares worth approximately $5.71 billion. Meanwhile, Charles Schwab Investment Management Inc significantly boosted its holdings by 14,072,672 shares, ending with 19,500,578 shares valued around $3.87 billion.
Accenture plc Stock Down 32.0%
Shares of Accenture (NYSE: ACN) are currently trading near $170.28. The company boasts a market capitalization of approximately $104.8 billion and a P/E ratio of 13.97, with a forward P/E of 11.46. Accenture's beta is 1.069, indicating moderate volatility. The stock's 52-week range spans from a low of $155.82 to a high of $317.05, with a 50-day moving average of $181.33 and a 200-day moving average of $228.18.
$ACN price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
Accenture reported revenue of $72.11 billion, reflecting a growth of 8.3%. The company's earnings per share (EPS) stood at $12.19, with a net margin of 10.61% and a return on equity (ROE) of 24.76%. Investors are looking ahead to the next earnings release scheduled for June 18, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
8 analysts cut price targets. 0 raised targets after the report.
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EPS & revenue
EPS beat estimates by 1.4%. Revenue missed estimates by 1.1%.
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Profit surprise
EBITDA came in 17% below estimates. Operating income met estimates.
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Pre-earnings setup
Expectations were about average going in.
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Analyst signal
2 analyst downgrades after the report. 8 price target cuts after the report.
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Earnings quality
Free cash flow was positive.
Earnings Call Summary
Accenture delivered a strong quarter with $18.7 billion in revenue, up four percent year over year, and record bookings of $22.1 billion. The company now has 85,000 artificial intelligence and data professionals, exceeding its goal. Management highlighted major demand from clients across artificial intelligence transformation, cybersecurity, and core business process modernization, with significant momentum in large enterprise programs and growing opportunities in emerging markets.
Guidance Accenture raised full year guidance and now expects between $127.25 billion and $128.75 billion in revenue for fiscal 2026. They also increased earnings per share guidance to between $13.65 and $13.90. Management expects three percent to five percent revenue growth, with free cash flow expected to reach $10.8 billion to $11.5 billion, and plans to deploy about $5 billion in acquisitions.
Severe negative reset. The report materially damaged the forward outlook and likely forces major downward revisions.
Dividend
Accenture offers an annual dividend rate of $6.52, yielding 3.83%. The dividend payout ratio is 50.98%, providing a steady income stream for shareholders.
Insider Buying and Selling at Accenture plc
Recent insider activity at Accenture includes several executives purchasing shares on June 5, 2026. CEO Julie Spellman Sweet acquired 216 shares at an average price of $179.76. Other insiders, including John Walsh, Joel Unruch, Melissa Burgum, Katherine Lee Clifford, and Manish Sharma, also bought shares on the same date.
Analysts Set New Price Targets
Morgan Stanley's downgrade to a hold rating and $177 price target is the latest in a series of analyst actions. On June 8, JP Morgan maintained a buy rating with a $201 target, while TD Cowen also kept a buy rating with a $258 target. Overall, Accenture holds a consensus buy recommendation with an average target price of $236.86 based on 26 analyst opinions.
About Accenture
Accenture plc is a global professional services company headquartered in Dublin, Ireland. It provides a broad range of services in strategy and consulting, digital, technology, and operations. With a workforce of approximately 786,000 employees, Accenture serves clients across various sectors, including communications, media, technology, financial services, health, and public service. The company is led by CEO Julie T. Spellman Sweet.
Bottom Line
Morgan Stanley's recent downgrade of Accenture to a hold rating with a $177 price target reflects cautious optimism about the company's future prospects. Investors will continue to monitor Accenture's performance, particularly with its upcoming earnings report. As always, it's important to remember that analyst ratings are one of many tools investors use to evaluate stocks.
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