Bank of America just raised its EUR/USD forecast
On Monday, Goldman Sachs reiterated its Buy rating and $750.00 price target for Intuit (NASDAQ:INTU) shares, representing about 12% upside from the current price of $670.28. According to InvestingPro data, analyst targets range from $530 to $785, with the stock currently trading near its 52-week high of $714.78. The firm’s analysts are optimistic about the company’s forthcoming financial results for the third fiscal quarter of 2025, which are set to be released on May 22, 2025. They believe this period will serve as a critical test for Intuit’s strategic initiatives, such as Assisted/Business Tax, Mid-Market, and AI prioritization, which could strengthen investor confidence in the company’s sustained growth potential.
Goldman Sachs forecasts that Intuit’s revenue and consumer growth will surpass market expectations, predicting a 13% increase in revenue and a 10% rise in consumer growth compared to the consensus estimates of 12% and 9%, respectively. This aligns with the company’s impressive track record, as InvestingPro data shows last twelve months revenue growth of 13.73% and an outstanding gross profit margin of 79.82%. With earnings scheduled for May 22, investors can access comprehensive analysis and 17+ additional ProTips through InvestingPro’s detailed research reports. This outlook is bolstered by IRS data indicating an acceleration in the growth of assisted tax services, where Intuit has been effective in driving adoption through competitive pricing.
The analysts also anticipate that Intuit’s focused marketing efforts and an integrated product portfolio, along with AI-driven investments, will positively impact the company’s market standing in the tax sector. Despite a slower growth in the do-it-yourself (DIY) tax category, Goldman Sachs views this as a minimal risk, noting that Intuit’s TurboTax is gaining DIY market share, benefiting from refined promotional strategies.
Furthermore, the stable demand for broader software among small and medium-sized businesses (SMBs) is seen as a favorable factor for Intuit’s Global Business Services, which accounts for approximately 60% of the company’s revenue. With Intuit’s year-to-date performance up by 8%, outpacing the Nasdaq’s 2% rise, analysts attribute this to investors favoring more defensive, US-centric assets amidst broader economic uncertainties.
Goldman Sachs concludes that Intuit is well-positioned to achieve multi-year, mid-teens or higher top-line growth and a free cash flow margin of over 35%. With a market capitalization of $187.38 billion and an overall financial health score of "GREAT" according to InvestingPro, the company maintains moderate debt levels while delivering strong returns. InvestingPro’s comprehensive analysis, including detailed valuation metrics and growth forecasts, is available through its Pro Research Report, offering investors deeper insights into Intuit’s financial position and growth potential. This is expected as the company transitions towards serving higher-value customers with higher average revenue per customer, thereby accessing larger total addressable markets and fostering extended growth and margin expansion opportunities.
In other recent news, Intuit has announced its plan to acquire GoCo, an HR and benefits solutions provider for small and mid-sized businesses. This acquisition aims to enhance Intuit’s Human Capital Management offerings, integrating GoCo’s features into Intuit’s payroll solutions. The deal is expected to be finalized in the fourth quarter of fiscal year 2025. Meanwhile, the Trump administration’s decision to phase out the IRS Direct File program could positively impact Intuit, as more tax filers might turn to commercial platforms like TurboTax. In another development, Intuit’s outlook has been upgraded to positive by S&P Global Ratings, reflecting strong revenue growth and above-average profitability. Intuit’s financial performance is projected to remain strong, with revenues expected to surpass $18 billion in fiscal 2025. KeyBanc Capital Markets has maintained an Overweight rating on Intuit, with a price target of $770, citing positive trends in the company’s TurboTax Live product suite. Mizuho (NYSE:MFG) Securities also reiterated an Outperform rating, maintaining a price target of $765, emphasizing the strategic importance of Intuit’s AI-powered platform. These recent developments highlight Intuit’s strategic positioning and growth potential in the financial software market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.