Accenture Invests in Interos; Street Says Buy

Accenture (ACN), a multinational professional services company, disclosed that it has made an investment in Interos through Accenture Ventures. The terms of the deal have not been disclosed so far.

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Interos is an operational resilience and supply chain risk management company that monitors global business relationships and identifies risks with the help of machine learning. It also analyzes several supply chain issues in real time across categories like financial, operational, governance, geographic, and cybersecurity.

With this deal, Interos becomes part of Accenture Ventures’ Project Spotlight, which was launched in November 2020. (See Accenture stock charts on TipRanks)

Accenture Security Global Leader, Kelly Bissell, said, “With Interos, we can help our clients see the typical ‘blind spots’ in their global supply chains. Through a holistic, real-time view of global business relationships and developments, they can review, monitor and anticipate cyber threats and other risks to their business that might normally go unnoticed until it’s too late.”

Stock Rating

Last week, Robert W. Baird analyst David Koning maintained a Hold rating on Accenture with a price target of $370 (2.15% upside potential from current levels).

Koning said, “We estimate already-announced acquisitions could add ~4.1% to F2022 (management previously noted acquisitions could add ~5% to F2022 revenue, which includes acquisitions yet to be announced); expects to spend ~$4 billion on acquisitions in F2022.”

Overall, the stock has a Strong Buy consensus rating based on 11 Buys and 3 Holds. The average Accenture price target of $384.93 implies 6.3% upside potential.

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Risk Factors

Investors should always be aware of the risks involved in any stock. According to the new TipRanks’ Risk Factors tool, ACN is at risk mainly due to two factors: Finance & Corporate and Ability to Sell, which contribute 32% and 23%, respectively, to the total 22 risks identified.