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Investing.com - UBS lowered its price target on Intuit (NASDAQ:INTU) to $725.00 from $750.00 on Friday, while maintaining a Neutral rating on the financial software provider following its fourth-quarter fiscal 2025 results. According to InvestingPro data, Intuit currently trades at a P/E ratio of 56.3x, with analyst targets ranging from $600 to $938.
The price target reduction comes as Intuit shares declined in after-hours trading despite reporting results largely in line with expectations. Investors appeared concerned about the company’s first-quarter fiscal 2026 revenue guidance of 15% year-over-year growth, which fell below analyst expectations of 16%. The company has maintained strong fundamentals, with impressive gross profit margins of 80.4% and a robust financial health score rated as "Good" by InvestingPro.
UBS noted that Intuit’s initial 14-15% year-over-year revenue growth guidance for its Growing Business Segment (GBS) also fell short of both the company’s long-term target of 15-20% and Street estimates of approximately 15.5%.
The investment firm suggested the market reaction reflects heightened scrutiny amid existing concerns about AI search capabilities and small business health. UBS questioned whether Intuit’s guidance is conservative or represents a more realistic outlook.
Despite the price target reduction, UBS expressed a relatively positive view on Intuit shares, citing "company-specific growth drivers outside of a macro recovery and AI supporting the stock."
In other recent news, Intuit reported strong fiscal fourth-quarter results, surpassing Wall Street expectations. The company posted an earnings per share (EPS) of $2.75, exceeding the forecasted $2.66, and reported revenue of $3.8 billion, which was above the anticipated $3.74 billion. Despite these positive results, Intuit’s stock experienced a decline in after-hours trading. Analysts at Stifel and BofA Securities both lowered their price targets for Intuit to $800, citing moderating growth, though they maintained Buy ratings. Stifel highlighted the upside from Intuit’s Credit Karma segment and growth in IES/QBOA, while BofA noted steady growth algorithms for QuickBooks and TurboTax. Meanwhile, Goldman Sachs reiterated its Buy rating with a $860 price target, despite noting some underperformance in Intuit’s Consumer segment. The company’s GoPayment Business Solutions and Credit Karma segments exceeded expectations, although the free cash flow margin was below forecasts. These developments reflect a mixed but overall positive outlook for Intuit’s financial performance.
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