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BMO Capital Markets reiterated its Outperform rating and $820.00 price target on Intuit (NASDAQ:INTU), currently trading near its 52-week high of $773.45, following meetings with the company’s CFO Sandeep Aujla and VP of Investor Relations Kim Watkins. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with a market capitalization of $210.9 billion.
The research firm noted that Intuit’s strong fiscal third quarter, driven by the best performance in the Consumer segment in several years, has alleviated concerns about the long-term tax opportunity for the financial software provider. The company’s impressive 80.26% gross profit margin and 14.99% revenue growth over the last twelve months support this positive outlook.
BMO Capital highlighted significant growth potential in the under-penetrated Assisted tax category, which represents a substantial opportunity for Intuit to expand its market share.
The firm identified multiple growth drivers for Intuit’s QuickBooks business to sustain mid to high-teens growth, including new artificial intelligence innovations, financial technology offerings, and mid-market expansion initiatives.
BMO Capital stated that platform benefits and internal AI utilization should support margin expansion for Intuit, which the firm described as its "favorite large-cap software idea."
In other recent news, Intuit Inc. reported robust fiscal third-quarter results, surpassing consensus estimates with total revenue of $7.8 billion, marking a 15% year-over-year increase. Earnings per share also exceeded forecasts, coming in at $11.65 compared to the anticipated $10.93. Following these results, Evercore ISI increased its price target for Intuit to $785, maintaining an Outperform rating. Mizuho (NYSE:MFG) Securities also raised its price target to $875 from $825, highlighting strong performance in Intuit’s QuickBooks and TurboTax segments, and projecting significant growth in its online ecosystem revenue.
Stifel analysts reiterated a Buy rating and maintained their $850 price target on Intuit, emphasizing the company’s pricing strategy and the potential for new offerings within its online ecosystem. Intuit’s recent announcement of price increases for QuickBooks products is expected to maintain growth momentum, with Stifel noting the low churn rates and potential gains from artificial intelligence. Mizuho also maintained an Outperform rating with a $825 target, anticipating new AI-driven opportunities and strong revenue growth in Intuit’s Global Solutions Group.
The successful performance of TurboTax Live, which saw a 47% year-over-year growth, contributed significantly to Intuit’s consumer group segment revenue increase. Credit Karma also outperformed projections, with revenues hitting $579 million, a 31% increase from expectations. These developments have led Intuit to update its full-year guidance, now expecting mid-point revenue of $18.74 billion and adjusting its EPS range to $20.07-$20.12.
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