J.P. Morgan Reiterates Overweight Rating on Accenture plc (ACN)

J.P. Morgan is out with a research report this morning, where it reiterates its Overweight rating on Accenture plc ACN; it has a $63.00 price target on the stock. The JPM analysts cited the company's recent investor conference, which was very well attended and included upbeat presentations from management and various business heads. Key takeaway were that Accenture is well positioned to outperform the industry, and the analysts remain confident that ACN has made the right investments to take advantage of several early-stage secular trends (e.g., globalization, mobility, regulation, cloud) to fuel sustainable premium growth. As for valuation, the analysts remarked, “Our latest view on CAGR in EPS for 2010-2013E and implied PEG. To arrive at our price target, we consider our 2010-2013E CAGR in EPS, and generally assume a PEG of about 1.2x for the IT Services group, but adjusting for company-specific factors for each stock.”