UPDATE: Goldman Sachs Reiterates Neutral Rating, Raises PT on Accenture

In a report published Friday, Goldman Sachs Group reiterated its Neutral rating on Accenture plc ACN, and raised its price target from $60.00 to $63.00. Goldman Sachs noted, “While record bookings and steady operating group results were a notable highlight in the quarter, we believe that the higher operating margin profile was more significant as it confirms that ACN's focus on contract profitability and global delivery can provide incremental operating leverage. That being said, we retain our Neutral rating as we balance a slower Consulting revenue growth profile and current valuation of 14.8X our CY13 EPS, which could limit multiple expansion. In our view, faster EPS growth and continued capital stewardship will remain the principle drivers for the shares. Specifically, we believe that a sustained turn in ACN's Consulting revenue could provide the next major catalyst.” Accenture plc closed on Thursday at $65.38.