J.P. Morgan Maintains OW Rating On ACN

Accenture ACN will host its Investor Conference in NYC tomorrow, “and we expect the event to be positive,” J.P. Morgan writes. “One of the key investor focus areas will be on Accenture's rising offshore delivery (GDN) mix and the implications on revenue/margins now that the heavy lifting transition is mostly done,” J.P. Morgan writes. “Our analysis indicates that we are near a positive inflection point on GDN mix shift, whereby 1) the deflationary impact on revenue should be far less meaningful going forward (which should modestly aid FY12 revenue growth, but more so in FY13 and beyond), and 2) margin benefits will be positive, though small in relation to revenue. Globalization is a big secular theme, and ACN seems best positioned to capitalize and deliver sustainable above average growth given past investments in the GDN. We maintain our OW rating ahead of the event.” Accenture closed Tuesday at $55.84.