Accenture Plc (NYSE:ACN) has agreed to purchase the German-based IT benchmarking and consulting agency LEXTA. The acquisition comes days after the corporate bought the Italy-based e-commerce company Openmind.
The LEXTA acquisition will assist Accenture improve its capabilities in IT benchmarking and sourcing whereas Openmind to assist purchasers re-invent on-line commerce experiences. The Eire-based skilled consulting providers supplier desires to develop its enterprise verticals whereas on the similar time creating operational synergies.
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Openmind’s multi-channel options will play a strategic function in bettering Accenture Interactive’s seamless cloud-based e-commerce providers. However, LEXTA’s cloud benchmarking options will assist purchasers make better-informed choices.
Accenture wrote within the acquisition assertion:
Combining LEXTA’s data-based evaluation functionality and Accenture’s expertise advisory abilities, we are going to additional develop our joint IT sourcing and benchmarking advisory providing to in the end notice new worth for our purchasers.
Must you put money into Accenture shares now?
From a valuation perspective, Accenture shares seem like pretty valued at a P/E ratio of 35.50. Moreover, the ahead P/E ratio of 32.23 additionally suggests a much less upward potential for worth buyers to focus on.
Moreover, Accenture’s earnings development expectations of seven.30% this 12 months and 11.92% subsequent 12 months are usually not compelling sufficient for aggressive development buyers. Nevertheless, the common annual development of about 11.80 is doubtlessly conservative given Accenture’s latest acquisitions.
Due to this fact, though ACN shares are usually not excellent for worth buyers now, they could possibly be engaging to long-term development buyers.
Technical overview: ACN inventory worth prediction for Q3 2021
Technically, Accenture shares seem like buying and selling inside an ascending channel formation within the each day chart. The inventory lately rallied to a brand new all-time excessive of $321 earlier than pulling again to $318.27. As well as, it nonetheless trades very near overbought situations within the 14-day RSI, creating an ideal alternative for a downward motion.
Due to this fact, buyers will goal prolonged pullback earnings at roughly $307.07 or decrease at $294.44. The important thing resistance ranges are $329.13 and $340.90.
Backside line: the case for promoting Accenture inventory now
Though Accenture is making strategic acquisitions to spice up future development, the short-term outlook appears to favor the bears. The inventory has lately rallied to new all-time highs, and the pullback seems to have extra room to run. Due to this fact, buyers can goal pullback earnings or look forward to the inventory to fall additional earlier than shopping for.
The place to purchase proper now
To take a position merely and simply, customers want a low-fee dealer with a observe report of reliability. The next brokers are extremely rated, recognised worldwide, and secure to make use of: