Truist Cuts Accenture Price Target 18% to $260 Citing AI Slowdown
Truist cut its Accenture price target to $260 from $317 while maintaining a Buy rating, citing stagnant enterprise AI demand and risk to fiscal 2027 estimates. Accenture’s stock has fallen 21.5% year to date and trades near its 52-week low around $189.
1. Truist Lowers Price Target
Truist lowered its Accenture price target to $260 from $317 and maintained a Buy rating, highlighting stagnant enterprise AI adoption that could cannibalize traditional consulting billable hours and threaten fiscal 2027 consensus earnings estimates.
2. Stock Performance and Valuation
Accenture’s shares have dropped 21.5% year to date and trade near a 52-week low around $188.73, reflecting investor concern over AI demand; the stock trades near 17x trailing earnings, below its 200-day moving average of $262.40.
3. AI Demand and Consulting Impact
Analysts warn that slower ecosystem spending and integration of AI tools may reduce demand for high-margin consulting engagements, prompting a recalibration of growth expectations for Accenture’s core IT services business.