Several leading U.S. consulting firms have proposed significant reductions to their federal contracts, aiming to save up to $20 billion, following directives from the Trump administration. This move involves either terminating existing agreements or scaling down their services within government agencies. Seven of the top ten consulting giants, including Booz Allen (BAH), Marsh and McLennan (MMC), IBM (IBM), and Accenture (ACN, Financial), are part of these negotiations.
The administration has pressed these firms to make deeper price concessions, warning of potential consequences if they fail to comply. In response, some companies are exploring innovative solutions, such as providing credits for work on artificial intelligence services without additional charges. This strategy signifies a proactive approach to maintain and strengthen their governmental partnerships.
This development reflects the growing pressure on consulting firms to adapt to new governmental expectations and highlights their willingness to renegotiate terms to secure future collaborations. The outcome of these negotiations could significantly impact the financial and operational dynamics of these consulting leaders in the public sector.
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 $362.52 with a high estimate of $415.00 and a low estimate of $280.00. The average target implies an upside of 27.47% from the current price of $284.40. 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 $354.65, suggesting a upside of 24.7% from the current price of $284.4. 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.
