Bank Of America Sees Accenture PLC Growing With Newer Offerings

In a report published Wednesday, Bank of America analyst Sara Gubins reiterated a Neutral rating and $85.00 price target on

. In the report, Bank of America noted, “ACN's investor day was well attended, and management's tone was upbeat.Management sees pricing as stable-to-improving, has a solid pipeline of deals, and has strong demand for Digital (17% of revenue) and Operations (ITO and BPO, 20% of rev.) practices. We remain Neutral on ACN shares with an $85 price target based on our view gross margin pressures will continue and a relatively sluggish FY15 revenue forecast of 6.5% in constant currency (with 100bp from M&A). ACN shares trade at 16x our CY15E EPS of $4.93, in line with its historical multiple.” Accenture PLC closed on Tuesday at $78.81.