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Investing.com - Stifel lowered its price target on Intuit (NASDAQ:INTU) to $800 from $850 while maintaining a Buy rating, following the company’s fourth-quarter earnings report. According to InvestingPro data, the stock currently trades at $697.76, with analysts’ targets ranging from $600 to $938.
The financial software provider delivered what Stifel called a "solid" fourth quarter, with upside from its Credit Karma segment and continued momentum in its move upmarket, as IES/QBOA grew 40% year-over-year. The company maintains impressive gross profit margins of 80.39% and achieved 15.63% revenue growth in the last twelve months.
Despite these positive results, Intuit shares traded down approximately 6% after hours, likely due to moderating growth projections for its GoBank Small Business Group (GBSG) in fiscal year 2026.
Stifel noted that Intuit’s fiscal 2026 guidance implies a deceleration of more than 100 basis points in year-over-year growth for GBSG to 14-15% from 16.2%, though the firm views the Consumer Tax and Credit Karma guidance as "undemanding."
The research firm expects "healthy upside" for both the Consumer Tax and Credit Karma businesses in coming quarters, and noted that Intuit management downplayed current and future impacts on demand generation from AI search. The company’s overall financial health score is rated as GOOD by InvestingPro, supported by strong profitability metrics and consistent dividend payments.
In other recent news, Intuit reported robust fiscal fourth-quarter results, surpassing Wall Street expectations with an earnings per share (EPS) of $2.75, compared to the forecasted $2.66. The company’s revenue also exceeded projections, reaching $3.8 billion against a forecast of $3.74 billion. Despite these positive earnings, Intuit’s stock experienced a decline in after-hours trading. In addition, the GoPayment Business Solutions segment outperformed expectations by 1%, and Credit Karma beat estimates by 12%. However, the Consumer segment underperformed by 3%, and the free cash flow margin was 400 basis points below expectations. Following these results, BofA Securities lowered its price target for Intuit to $800 from $875, though it maintained a Buy rating on the stock. Goldman Sachs also reiterated its Buy rating and maintained its $860 price target. These developments highlight the mixed performance across Intuit’s various business segments.
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