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Their fixed barrel contributes a good deal to their inherent accuracy, similar to the Walther P38. There were a few guys in the 1950's converting them to.45 ACP for use in NRA bullseye competition so they would qualify for the .45 class (bullseye requires three guns, a .45, a "centerfire", and a rimfire). The Lugers were so much better than 1911s that the NRA eventually changed the rules to exclude them, changing them to ".45 service pistol".
So, yes, they certainly have the potential. Whether any given example is accurate is subject to the same vagaries of any other design.
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