JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - BMO Capital has raised its price target on Intuit (NASDAQ:INTU) to $870 from $820 while maintaining an Outperform rating on the stock. The software giant, currently trading at $755.21 with a market capitalization of $210.8 billion, is showing strong momentum with 20 analysts recently revising their earnings estimates upward, according to InvestingPro data.
The price target increase comes as BMO Capital assesses potential positive implications from the One Big Beautiful Bill Act for Intuit’s TurboTax business in the next fiscal year.
BMO Capital believes the new tax measures could help Intuit sustain momentum in its consumer tax segment, particularly through favorable mix and upsell opportunities.
The firm noted that Intuit has historically performed well following major tax legislation changes, citing the company’s solid tax performance after the 2017 tax bill changes and during the pandemic period.
BMO Capital continues to view Intuit as its "top large cap software idea" according to its research note.
In other recent news, Intuit has made significant strides in its business operations. The company has announced a reduction in its workforce by approximately 600 employees, representing about 3-4% of its total headcount. Mizuho (NYSE:MFG) noted that this move could lead to operating margin expansion, attributing the layoffs to efficiency gains from Intuit’s use of artificial intelligence. Additionally, Intuit has launched new AI agents across its product lineup, which Mizuho believes could drive customer upgrades and create new monetization opportunities.
In a strategic acquisition, Intuit has acquired Relevvo, an AI-powered sales and marketing platform, to enhance its B2B engagement capabilities. This acquisition aims to strengthen Intuit’s ability to serve mid-market customers by leveraging Relevvo’s technology. Meanwhile, CLSA has initiated coverage on Intuit with an outperform rating and a $900 price target, highlighting the company’s potential to dominate the mid-market accounting software sector in the U.S.
BMO Capital Markets also reiterated its Outperform rating, emphasizing Intuit’s growth potential, particularly in the under-penetrated Assisted tax category. The firm pointed to strong performance in the Consumer segment and identified multiple growth drivers for the QuickBooks business. These developments underscore Intuit’s strategic focus on innovation and market expansion.
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