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On Wednesday, BMO Capital Markets adjusted its stance on Intuit shares (NASDAQ:INTU), with analyst Daniel Jester revising the price target downward to $714 from the previous target of $760. Despite the reduction, Jester reaffirmed an Outperform rating on the stock. With a current market capitalization of $175 billion and trading near its 52-week low, InvestingPro analysis indicates the stock is currently trading close to its Fair Value.
Intuit, known for its financial and tax preparation software, including QuickBooks and TurboTax, delivered a strong fiscal second-quarter performance. The company’s results surpassed modest expectations, particularly noting the robust growth of Credit Karma and solid trends in its QuickBooks Online (QBO) platform, with the exception of Mailchimp. Intuit’s earnings per share (EPS) for the first half of fiscal 2025 showed approximately a 14% increase, indicating healthy bottom-line trends. InvestingPro data reveals impressive gross profit margins of 79.61% and revenue growth of 12.48% over the last twelve months, demonstrating the company’s operational efficiency.
Jester highlighted the execution in tax-related services as a key immediate driver for the company’s performance. Looking at the medium term, he identified the potential for driving efficiency through artificial intelligence and the opportunities within the middle-market segment of QuickBooks as supportive factors for sustained growth in both revenue and earnings.
The analyst’s commentary underscored Intuit’s solid quarter and the company’s capacity to leverage upcoming tax season dynamics. Jester remains confident in the stock’s risk-reward balance within BMO Capital’s coverage universe, suggesting that Intuit’s shares present an attractive investment despite the revised price target.
In other recent news, Intuit reported strong second-quarter fiscal year 2025 earnings, surpassing market expectations with an earnings per share (EPS) of $3.32, significantly higher than the projected $2.58, and revenue of $4 billion, exceeding forecasts of $3.83 billion. The company’s performance was bolstered by a 17% year-over-year increase in revenue, driven by strategic focus on AI-driven solutions and small business market expansion. Piper Sandler raised Intuit’s stock price target to $785, maintaining an Overweight rating, reflecting confidence in the company’s trajectory and early benefits from AI initiatives. Conversely, BofA Securities adjusted their price target to $740 from $780, citing a contraction in sector multiples and a dip in free cash flow, but maintained a Buy rating. Evercore ISI also revised their price target to $700 while keeping an Outperform rating, emphasizing Intuit’s solid quarterly performance and reaffirmed fiscal year guidance. Additionally, Morgan Stanley (NYSE:MS) upgraded Intuit’s stock rating to Overweight, setting a new price target of $730, highlighting the company’s growth prospects, particularly in the small business segment. These developments indicate a strong investor confidence in Intuit’s ongoing strategies and market position.
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