HSBC Initiates Coverage on Accenture with Reduce Rating, Citing AI Disruption Risks

HSBC initiated coverage of Accenture (ACN) with a "Reduce" rating and a price objective of $240. The analyst believes the market is underestimating the AI disruption risk facing Accenture, which could lead to pricing pressure. Accenture has agreed to acquire Maryville Consulting Group to expand its technology and digital transformation capabilities.

Title: HSBC Initiates Coverage of Accenture with "Reduce" Rating and Price Objective of $240

HSBC has initiated coverage of Accenture (ACN) with a "Reduce" rating and a price objective of $240, as reported by The Fly [1]. The analyst believes the market is underestimating the AI disruption risk facing Accenture, which could lead to pricing pressure. Accenture has also agreed to acquire Maryville Consulting Group to expand its technology and digital transformation capabilities.

According to Keith Boone, Tech Strategy & Advisory Americas lead at Accenture, the acquisition of Maryville Consulting Group is a strategic move to enhance the company's technology and digital transformation capabilities. Maryville Consulting Group's strong expertise in tech strategy and digital operations, along with its healthy partnerships and client relationships, will significantly enhance Accenture's ability to help clients leverage technology as a competitive advantage and drive technology value to achieve business goals [2].

The acquisition of Maryville Consulting Group, which is subject to customary closing conditions, will see its 100 employees join Accenture in North America. The company's framework assists businesses with their technology transformation through the adoption of processes, responsibilities, governance, funding models, and measurements. It is also developing a specialization in advising digital infrastructure firms to support investment prioritization, cost transparency, and operational scale in the context of AI adoption.

In the first quarter of 2025, Accenture reported revenue at the top end of its guided range, supported by solid booking, particularly in large-scale transformational projects from major corporate clients. Despite these results, shares declined due to investor sentiment being impacted by continued client caution amid heightened global uncertainty, including concerns around tariffs and consumer sentiment, as well as the U.S. administration’s initiative to streamline federal operations [1].

Aristotle Capital Management, LLC, an investment management company, released its Q1 2025 investor letter, noting that Accenture's global scale and deep expertise make it well-positioned to continue to provide solutions and deepen its partnerships with many of the world’s largest companies as they continue to implement increasingly sophisticated technologies [1].

References
[1] https://ca.finance.yahoo.com/news/hsbc-begins-coverage-accenture-acn-034929383.html
[2] https://www.research-live.com/article/news/accenture-to-buy-maryville-consulting-group-/id/5141353