Accenture continues to demonstrate its ability to deliver critical solutions as well as emerging technology offerings, offsetting the more commoditized businesses, Barclays noted.
"In our view, the growth rates of both the digital and non-digital revenue are sustainable in the near term and support a slightly higher multiple than we used previously for valuation," Barclays analysts said.
Accenture reported earnings of $1.30 a share for the fiscal third quarter yesterday, above analysts' estimates of $1.23 a share for the quarter. Revenue grew 0.4% year over year to $7.77 billion for the quarter, above analysts' estimates of $7.55 billion.
Additionally, the company expects to report revenue of $7.45 billion to $7.7 billion for the fiscal fourth quarter, compared to analysts' estimates of $7.58 billion for the quarter. For more on its earnings results, click here
Accenture is engaged in providing management consulting, technology and outsourcing services.
Separately, TheStreet Ratings team rates ACCENTURE PLC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate ACCENTURE PLC (ACN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and increase in net income. We feel its strengths outweigh the fact that the company shows low profit margins."