UPDATE: J.P. Morgan Lowers PT on Accenture Following F3Q Topline Miss

In a report published Friday, J.P. Morgan analyst Tien-tsin Huang reiterated an Overweight rating on Accenture (NYSE: ACN), but lowered the price target from $80.00 to $76.00.

In the report, J.P. Morgan noted, “As feared in our preview, ACN's topline missed consensus/guidance, but came in below our Street-low estimate too. Guidance indicates further deterioration in demand, leading us to significantly cut our FY14 estimates. We expect modest growth over the near term, but importantly believe growth issues are likely cyclical. Moreover, conservative F4Q guidance (and hopefully beyond F4Q), relatively defensive EPS, and potential dividend increase in Sep should offer some support to the stock after an expected healthy correction today. With the stock lower, we can move gently off the sideline, on the assumption that broader C2Q results will still show Accenture taking share vs. peers, supplemented by an attractive total return and defensive EPS growth.”

Accenture closed on Thursday at $80.22.