Goldman Sachs Raises EPS Estimates on Accenture, Buy

Goldman Sachs raised its earnings per share estimates on Accenture ACN ahead of the company's quarterly earnings report, which is due to be published on June 23. In a research report published today, Goldman states, "Our new estimates reflect no change to our constant currency revenue growth or margin assumptions. For FY11 we now forecast EPS of $3.27 (+23% yoy) from $3.26, for FY12 we now forecast EPS of $3.77 (+15%) from $3.75, and for FY13 we now forecast EPS of $4.32 (+14%) from $4.29. On a constant-currency basis, our revenue growth forecast remains set at 12.3% yoy for FY11, 7.7% for FY12, and 7.2% for FY13." At the moment Goldman has a Buy rating and a price target of $64 placed on the company's stock. On Tuesday, Accenture added 2.13% to its value to close the day at $57.12. In the same report, Goldman stressed it still prefers Cognizant Technology Solutions CTSH to Accenture. The report states, "We expect strong results from ACN to bode well for CL-Buy CTSH, which remains our top large-cap Consulting & Outsourcing idea based on three factors: (1) industry leading revenue growth of 32% in CY11 and 28% in CY12 powered by offshore's secular growth; (2) defensive earnings profile with operating margins set at 19% through CY13; and (3) strategic account model (totaling with 173 clients) and penetration opportunities." At the moment, Goldman has a Buy rating placed on Cognizant and a price target of $93. On Tuesday, Cognizant lost 0.24% of its value to close the day at $70.54.