One to watch

THIS year did not start well for Accenture. The company was a sponsor of scandal-hit golfer Tiger Woods and got dragged into the media-fest. Having dropped his sponsorship, however, it can now focus on the real world, which seems to be recovering.

Accenture is a play on the growth in IT spending, which is showing signs of picking up. Accenture is also seeing activity picking up in finance and accounting. Whatever one might think about the merits of banks, they create exciting opportunities for the likes of Accenture, as clients look for advice on merging IT systems and networks on to a common platform.

The industry is fragmented and, as a top-five player, Accenture has an estimated 3 per cent share of the market and can continue to grow share without too much pressure.

This is a well-managed business with a major opportunity for growth in traditional markets such as the US but also in developing markets such as Brazil and Asia. The world economy has improved and Accenture is well-placed to take advantage.

Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statements of fact nor should reliance be placed on these views when making investment decisions. Past performance is not a guide to the future.

Tesco

438.05p +7.05p

Broker says ACCUMULATE

CHARLES Stanley expects Tesco to continue to deliver high single-digit or low double-digit growth in underlying earnings and dividends after the supermarket's full-year results on Tuesday. The broker said: "We believe long-term earnings growth prospects remain the best in the sector."

Vodafone

150.4p +0.35p

Broker says BUY

THE rise in the cost of licences for third-generation mobile telephone operators in India is starting to slow down, according to Execution Noble, and the price of licences still lies below its original prediction. Noble added: "Vodafone is still in the game, and it now looks almost a certainty that it will obtain a licence for less than consensus."