Goldman Sachs Discusses Accentures Add To S&P 500

Goldman Sachs is out with a research report on Accenture ACN after S&P announced yesterday it was adding the stock to its S&P 500 index. Shares are on America's Buy List, and it has a $76-$77 target value. In a note to clients, Goldman Sachs writes, "Based on our estimate, the addition of ACN shares to the S&P 500 should create net demand of approximately 72.7 mn shares (10% of fully diluted outstanding shares). This would represent 13.5 days of trading based on the current 10-day average volume of 5.4 mn shares. Today's announcement comes as a surprise as the company's corporate structure (general partnership) and incorporation in Ireland were previously obstacles to inclusion in the S&P 500. Based on our discussions with the company, there are no changes to its corporate structure." Shares of ACN are up $2.91 in pre-market trading to $60.70, a gain of over 5% this morning.