ACN - Embedded Expectations Analysis - 2020 07 29
Accenture plc (ACN:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 21.8x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about digital transformation demand, new bookings performance, and revenue in EuropeSpecifically, they may be overstating the potential of their new growth model, the market position of their AI-powered assets in their SynOps platform, and the size of their largest global insurance customer. In addition, they may lack confidence in the sustainability of digital transformation demand and their ability to sustain new bookings performance. Furthermore, they appear concerned about continued revenue declines in Europe and service interruptions in their home operations of India and the Philippines, and they may lack confidence in their ability to meet their expected operating margin of 15%. Finally, they may lack confidence in their ability to attract top talent
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