J.P. Morgan Overweight on Accenture

J.P. Morgan Chase & Co. is out with a research report on Accenture plc (NYSE: ACN) and it has an Overweight rating and a $64 price target on shares.

In a note to clients, J.P. Morgan Chase & Co. writes, "ACN will report F4Q results and issue FY12 guidance on Sep 27, AMC. All eyes will be on whether ACN will maintain its 7-10% local FX FY12 revenue growth goal, and after much deliberation we think they will reiterate. However, we are lowering our FY12 EPS, and go below consensus, primarily for unfavorable FX trends. Overall, we see a little bit of a winner's curse dilemma as a solid report and reiteration should ease some near-term concerns given recent stock weakness (ACN down 17% QTD vs. S&P 500 down 14%), but may not chase away the bears looking for signs of weakness. We remain OW given the FCF profile ('12 FCF yield of 8%), client relationships, management depth, and diversification – we expect return of cash to shareholders to remain a priority."

Shares of ACN closed at $50.41 on Friday.