Accenture shares may be solid bet - Barron's
NEW YORK, June 28 (Reuters) - Technology outsourcing and consulting firm Accenture Ltd (ACN.N) may prove a solid bet even in a tepid recovery, according to an online report by Barron's.
Accenture's third-quarter profit fell due to a slower economy and a stronger dollar, but the results were still better than Wall Street's expectations.
It also raised its full-year outlook, saying some of its customers were beginning to make investment decisions after a long freeze in such plans.
New bookings, typically a leading indicator, was down 3 percent from a year ago for Accenture, and might have been higher without currency fluctuations, the report said.
The company has no debt, generates a free cash flow yield of 8.4 percent and boasts a recognizable brand and leading market share, Barron's said.
Also, at its Friday's closing price of $33.72, Accenture shares fetch only 12.2 times projected 2010 earnings -- well below the average of 15.9 times projected earnings for the IT consulting and services sector and near the bottom of its own range over the past decade, Barron's noted.
"Because Accenture continues to trade toward a trough multiple, we believe now is the time to buy shares," the report quoted Susquehanna analyst James Friedman as saying.
Friedman also said he thought Accenture might sweeten its 50 cents per share annual dividend later this summer, Barron's said.
