Piper Sandler has upgraded shares of Accenture plc (NYSE: NYSE:) from Neutral to Overweight, with an increased price target of $395.00, elevated from the previous $329.00. The adjustment follows a positive assessment of the company’s fiscal year 2025 outlook and underlying performance indicators.

On Thursday, the firm highlighted Accenture’s strong start to the first quarter, which exceeded consensus expectations. The company’s robust bookings, which reached $20.2 billion with a book-to-bill ratio of 1.2x, were particularly noteworthy. Additionally, Accenture’s aggressive hiring strategy, which saw a quarterly increase of 24,000 employees or 3.2%, was seen as a sign of strength.

The company’s outlook for FY25 is considered attractive, especially since the full-year guidance does not anticipate improvements beyond the first quarter. Piper Sandler expressed optimism regarding the exponential growth in Generation AI (GenAI) bookings and revenues. In FY24, GenAI bookings surged to $3 billion, and revenues climbed to $900 million, a significant leap from the previous year’s $300 million in bookings and $100 million in revenues.

Accenture’s success in scaling GenAI projects and the growth in data and security-related work, which generated $9 billion in revenues and a 23% growth rate, were also factors contributing to the upgraded rating. Piper Sandler concluded that Accenture’s improving top-line metrics, combined with a conservative guidance, make its stock an attractive investment, especially as the company benefits from increased GenAI-related activities.

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