Goldman Sachs Raises EPS Estimates on Accenture, Buy

Goldman Sachs raised its earnings per share estimates on Accenture (NYSE: ACN) ahead of the company's quarterly earnings report, which is due to be published on June 23.

In a research report published today, Goldman states, "Our new estimates reflect no change to our constant currency revenue growth or margin assumptions. For FY11 we now forecast EPS of $3.27 (+23% yoy) from $3.26, for FY12 we now forecast EPS of $3.77 (+15%) from $3.75, and for FY13 we now forecast EPS of $4.32 (+14%) from $4.29. On a constant-currency basis, our revenue growth forecast remains set at 12.3% yoy for FY11, 7.7% for FY12, and 7.2% for FY13."

At the moment Goldman has a Buy rating and a price target of $64 placed on the company's stock. On Tuesday, Accenture added 2.13% to its value to close the day at $57.12.

In the same report, Goldman stressed it still prefers Cognizant Technology Solutions (NASDAQ: CTSH) to Accenture.

The report states, "We expect strong results from ACN to bode well for CL-Buy CTSH, which remains our top large-cap Consulting & Outsourcing idea based on three factors: (1) industry leading revenue growth of 32% in CY11 and 28% in CY12 powered by offshore's secular growth; (2) defensive earnings profile with operating margins set at 19% through CY13; and (3) strategic account model (totaling with 173 clients) and penetration opportunities."

At the moment, Goldman has a Buy rating placed on Cognizant and a price target of $93. On Tuesday, Cognizant lost 0.24% of its value to close the day at $70.54.