Global professional services company Accenture plc (NYSE:ACN) recently revealed that it intends to acquire AFD.TECH, a network services company. The financial terms of the deal have been kept under wraps.
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Following the news, shares of the company gained 1.5% to close at $380 in the extended trading session on Wednesday.
Strategic Impact
The intended acquisition is expected to be complementary to Accenture’s Cloud First capabilities. Further, AFD.TECH’s addition to Accenture’s portfolio is likely to result in serving its customers more efficiently.
Management Commentary
The Market Unit Lead for Accenture in France & Benelux, Olivier Girard, said, “To succeed in their digital transformation and take advantage of its full potential, companies must act now to adopt the right strategy and build new business solutions enabled by network investments. This acquisition would give us a significant footprint in advanced mobile and enterprise networks.”
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Price Target
Recently, Robert W. Baird analyst David Koning reiterated a Hold rating on the stock with a price target of $370, which implies downside potential of 1.4% from current levels.
Consensus among analysts is a Strong Buy based on 11 Buys and 3 Holds. The average Accenture price target of $384.93 implies upside potential of 2.6% from current levels.
Smart Score
Accenture scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 51.7% over the past year.
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