Accenture Price Target Slashed to $220; Buys IndX and Alfahealth
ACN•Berenberg cut Accenture’s price target by 19.4% to $220 while maintaining its Buy rating, citing AI-driven pricing deflation and sector-wide multiple compression. Meanwhile, Accenture acquired Siemens software specialist IndX and Italian healthcare platform Alfahealth to expand its manufacturing and healthcare offerings ahead of June 18 earnings.
1. Berenberg Lowers Price Target
Berenberg reduced Accenture’s price target to $220 from $273 while maintaining a Buy rating, attributing the cut to sector-wide multiple compression and AI-driven pricing deflation without altering earnings forecasts.
2. AI Risks and Growth Opportunities
The brokerage identified AI-led billable hour reductions as a deflationary force across legacy IT services but highlighted growth in enterprise modernisation, AI infrastructure, agentic AI deployment and AI-powered business transformation where Accenture’s higher-value service mix and partnerships offer an advantage.
3. Strategic Manufacturing and Healthcare Acquisitions
Accenture acquired Siemens software specialist IndX and Italian healthcare platform Alfahealth to bolster its manufacturing technology and healthcare consulting capabilities, positioning the company to capture emerging demand in these sectors.
4. Earnings Outlook and Analyst Consensus
Analysts currently rate Accenture shares as a Buy with an average price target of $247.13, and the June 18 earnings report is expected to shed light on the impact of recent acquisitions and AI-related bookings on revenue growth.
