The Pentagon has decided to cancel IT service contracts valued at $4 billion, impacting several major firms such as Deloitte, Accenture (ACN, Financial), and Booz Allen (BAH). This move follows a broader initiative to reduce consultancy expenditures initiated by the Trump administration.
Defense Secretary Pete Hegseth determined that these contracts represented non-essential spending on external consultants. It was concluded that Pentagon staff could execute these tasks more efficiently. This decision underscores a strategic shift towards utilizing internal resources over third-party services to enhance operational efficiency.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for Accenture PLC (ACN, Financial) is $364.61 with a high estimate of $415.00 and a low estimate of $280.00. The average target implies an upside of 27.83% from the current price of $285.22. More detailed estimate data can be found on the Accenture PLC (ACN) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Accenture PLC's (ACN, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Accenture PLC (ACN, Financial) in one year is $355.83, suggesting a upside of 24.76% from the current price of $285.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Accenture PLC (ACN) Summary page.
