Morgan Stanley Reiterates Equal-Weight, $66 Target on Accenture

Morgan Stanley maintains its Equal-weight rating and $66 target price on Accenture ACN and raises F1Q estimates as company is staying positive despite macro headwinds. Morgan Stanley says, “Revenues and EPS are likely to beat Street numbers of $6.85B and $0.94 respectively, in our view. We are raising our numbers to $6.9B and $0.95, as we believe that revenues will achieve (at least) the midpoint of guidance. Estimates appear achievable given: 1) ACN's recent history of conservative guidance; 2) F1Q's strong seasonal patterns; 3) robust US job postings observed by our proprietary Recruiting Monitor; and 4) solid visibility driven by record bookings last quarter.” ACN closed at $58.71 per share on Friday.