Accenture to acquire Italy’s Fibermind to expand European footprint

June 19, 2024 06:29 AM PDT | By Invezz

Accenture to acquire Italy’s Fibermind to expand European footprint — Image source: Invezz

Details of Accenture-Fibermind agreement

Accenture Plc did not disclose what it’s willing to pay for Fibermind on Wednesday.

Accenture did confirm, however, that the proposed acquisition is subject to meeting customary closing conditions, including regulatory clearances. Mauro Macchi – its chief executive said in a press release today:

As a result of the acquisition, we will expand our capabilities to offer end-to-end network engineering services, delivering higher quality, greater innovation, and more rigorous cost management to our clients.

Accenture stock that currently pays a dividend yield of 1.81% is currently down more than 25% versus its year-to-date high in early March.

Why is $ACN buying Fibermind?

Acquiring Fibermind will enable Accenture Plc to expand its footprint in Europe and accelerate growth in what is a strategic sector for Italy.

The New York listed firm is convinced the acquisition it announced today complements ones it previously made in Europe, including AFD.TECH, Arca, and umlaut. According to Roberto Pagella – the head of Italian operations at $ACN:

The synergies with Fibermind will allow us to create a centre of excellence in engineering services where technology and data enhance and amplify human skills and knowledge.

The announcement arrives only a day before Accenture Plc is scheduled to report its financial results for the third quarter.

What to expect from Accenture Q3 earnings?

Consensus is for Accenture Plc to report $16.54 billion in revenue on $3.15 a share of earnings for its Q3.

Earlier this week, Ramsey El-Assal – a Barclays analyst maintained Accenture stock at “overweight” but lowered his price target from $390 to $350. The new price objective, nonetheless, suggests well over 20% upside from here.

El-Assal trimmed his price target on $ACN due to challenges in consulting and tech services.

Note that Barclays is not the only investment firm that’s constructive on Accenture stock at the moment. In fact, analysts at Citigroup are much more bullish and see upside in shares of the Dublin-headquartered firm to $400 that signals potential for a whopping 40% upside from here.

Still, our market analyst Crispus Nyaga talked of a few challenges in the face of ACN on Wednesday:

There are also concerns that Accenture is still highly overvalued. While its stock has plunged hard, it still trades at a forward PE multiple of 24.50, which is higher than the forward S&P 500 multiple of 21. Its forward EV to EBITDA ratio of 14.45 is also higher than the sector median of 14.

The post Accenture to acquire Italy's Fibermind to expand European footprint appeared first on Invezz

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video (Content) is a service of Kalkine Media LLC., having Delaware File No. 4697309 (“Kalkine Media, we or us”) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.