Analyst Note| Julie Bhusal Sharma |
Accenture reported an excellent first quarter, surpassing our expectations and CapIQ consensus. The wide-moat company attributed the strong quarter to broad-based overdelivery--which was helped by increased productivity from higher-than-usual utilization rates--and higher broad-based demand than expected. Apart from results, the outlook for the remainder of fiscal 2021 is also better and brighter than previously guided. We feel confident in our expectations that Accenture can reach the high end of guidance for the remainder of the year--which we think is partially supported by strong bookings. As a result, we’re increasing our fair value estimate to $200 per share from $187 per share. Upon results, Accenture’s shares are up 8%. However, we still view the wide-moat name as overvalued at $266 per share.