Global professional services firm Accenture (ACN) has signed an agreement to acquire Italy-based advanced software and professional services provider Ethica Consulting Group. The financials of the deal have not been revealed so far.
Ethica operates a group of technology companies, which include Espedia, Altevie Technologies, and ICM.S. Each of these companies has SAP Platinum Partner recognition and specializes in specific areas of SAP technology.
The acquisition will boost Accenture’s SAP capabilities and enable its clients to develop innovative services and products. The company’s shares closed 1.8% higher on Thursday. (See Accenture stock chart on TipRanks)
The Lead for Accenture Technology in Italy, Central Europe, and Greece, Alessandro Marin, said, “Bringing in Ethica’s talent and resources will allow us to further scale our SAP capabilities in Italy and help companies use technology to become more agile and productive.”
Argus Research analyst Jim Kelleher recently maintained a Buy rating on the stock and raised the price target to $330 (10% upside potential) from $300.
In a research note to investors, Kelleher stated, “Accenture appears to have the financial resources, customer presence, and market strength to thrive as companies accelerate digital transformation to a hybrid post-pandemic world.”
Overall, the stock has a Strong Buy consensus rating based on 14 Buys and 4 Holds. The average Accenture price target of $323.06 implies 7.7% upside potential from current levels. The company’s shares have gained 39.1% over the past year.
According to TipRanks’ Smart Score rating system, Accenture scores a “Perfect 10”, suggesting that the stock is likely to outperform market averages.
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