Accenture (ACN) recently announced that it has completed its acquisition of workforce optimization consultancy Workforce Insight, for an undisclosed amount. Following the news, shares of Accenture rose 0.9% at the close of Tuesday’s trading session.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The acquisition is in line with Accenture’s focus on expanding its workforce management capabilities. The 300-strong team of Workforce Insights will be integrated into Accenture’s Intelligent Platform Services arm, adding value to its advisory and planning services, and expanding its data analytics technology solutions. The deal will also help Accenture reach Workforce Insights’ wide range of customers across the healthcare, manufacturing, retail and public sector industries.
The announcement comes on close heels of Accenture’s definitive agreement to acquire Wabion, a Google Cloud services provider, which was announced last week. (See Accenture stock chart on TipRanks)
Emma McGuigan, global lead of Intelligent Platform Services, Accenture, said, “With an increased focus on business resilience and agility to compete and thrive during these extraordinary times, companies need a holistic, connected approach to workforce and human capital management to achieve and sustain operational excellence.”
She further justified the acquisition, saying, “Workforce Insight’s dedicated team of professionals…ideally complement Accenture’s capabilities and better position us to drive value for our clients.”
Following strong performance results for the third quarter of fiscal 2021 last month, Argus Research analyst Jim Kelleher reiterated a Buy rating on the stock, while raising the price target to $330 from $300. The analyst’s price target implies an upside potential of 5.8% from current levels.
Kelleher attributed the upside to the company’s revenues and earnings beat, double-digit year-over-year growth on both metrices, and raised guidance for the full fiscal year of 2021. The analyst also believes that Accenture’s financial strength, wide customer base, and market strength are key driving forces for business growth as digital transformation ramps up across industries to suit a hybrid post-pandemic world.
Consensus among analysts is a Strong Buy based on 14 Buys and 4 Holds. The average Accenture price target of $323.06 implies upside potential of 3.5% from current levels.
Recent News:
Becton Dickinson Snaps Up Velano Vascular
High Tide Acquires DankStop for $3.85M
Vistra Speeds up Zimmer Coal Plant Closure Plans
