Intuit stock price target lowered to $800 by BofA Securities

Investing.com - BofA Securities lowered its price target on Intuit (NASDAQ:INTU) to $800 from $875 while maintaining a Buy rating on the stock. The target remains within the broader analyst range of $600-$1000, with InvestingPro data showing the company currently trading at $697.76.

The firm’s decision follows Intuit’s Q4 results, though BofA Securities indicated no change to its positive view on the company. The analyst noted that growth algorithms for both QuickBooks and TurboTax flagship franchises remain largely unchanged. This confidence appears well-founded, as InvestingPro data reveals impressive gross profit margins of 80.39% and robust revenue growth of 15.63% over the last twelve months.

BofA Securities suggested that concerns about Credit Karma weakness from slowing search acquisition will likely subside following the better outlook. While Mailchimp continues to lag without a clear fix in sight, it represents only a 1.5% headwind to total business solutions growth. The company maintains strong overall financial health, earning a "GOOD" rating from InvestingPro’s comprehensive analysis framework.

The firm highlighted that Intuit’s improved FY26 margin outlook should counter bearish arguments that TurboTax unit economics are changing. BofA also noted the company’s bullish tone regarding 15% to 20% long-term growth for TurboTax Live business.

The new $800 price target is based on 29x BofA’s calendar 2026 estimated free cash flow, reduced from the previous 33x multiple due to compression across the group.

In other recent news, Intuit reported strong fiscal fourth-quarter 2025 results, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $2.75, exceeding the forecasted $2.66, and reported revenue of $3.8 billion, which was higher than the anticipated $3.74 billion. Despite these positive financial results, Intuit’s stock saw a decrease in after-hours trading. The GoPayment Business Solutions segment outperformed expectations by 1%, and Credit Karma exceeded estimates by 12%. However, Intuit’s Consumer segment underperformed by 3%, and the free cash flow margin fell short by 400 basis points. Goldman Sachs maintained its Buy rating on Intuit with a price target of $860. These developments reflect the company’s mixed performance across different segments, even as overall earnings and revenue results were strong.

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