Accenture, a professional services company, snapped up North Carolina-based Core Compete, a cloud analytics services firm. The financial terms of the deal were not disclosed.
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Through this acquisition, Core Compete’s team of over 260 professionals will join Accenture’s (ACN) Applied Intelligence practice, which will help clients in shaping and executing their cloud-based data and artificial intelligence (AI) strategies to drive more business value, the company said.
Focused on supply chain, retail, and financial services, Core Compete helps in enabling digital transformations with cloud-native solutions, which deliver AI and machine learning-infused business results. Notably, the firm caters to a huge client base across the US and UK.
Accenture’s Applied Intelligence Global Lead Sanjeev Vohra said, “Over the past year we’ve seen cloud adoption increase, enabling organizations to unlock the enterprise value from data and AI strategy at speed. Core Compete’s approach to cloud analytics transformation helps us further accelerate time to value for our clients, giving them the right tools, strategy and talent to reap the full benefits of being data-driven.” (See Accenture stock analysis on TipRanks)
On April 6, Deutsche Bank analyst Bryan Keane increased the stock’s price target to $310 (9.7% upside potential) from $278 and reiterated a Buy rating after meeting with management.
In a note to investors, Keane said that although demand for IT was strong before the pandemic broke out, Accenture’s CTO Paul Daugherty currently considers the demand to be “significantly stronger.” The analyst believes the company is set to “benefit incrementally from the accelerated transformational shift.”
Shares have rallied 64.5% over the past year, while Wall Street analysts are still bullish about the stock. The Strong Buy consensus rating boasts 9 Buy ratings versus 3 Hold ratings. Looking ahead, the average analyst price target stands at $300.33, putting the upside potential at 6.3% over the next 12 months.
Accenture scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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