Jefferies lifts Intuit stock price target to $850, maintains buy

On Friday, Jefferies analyst Brent Thill adjusted the price target for Intuit stock, raising it to $850 from the previous $735, while reiterating a Buy rating. The revision follows Intuit’s consistent performance, with the company surpassing revenue expectations across all segments for three consecutive quarters. According to InvestingPro data, Intuit boasts impressive gross profit margins of nearly 80% and has achieved a robust revenue growth of 13.7% over the last twelve months.

Intuit has increased its fiscal year 2025 guidance to a year-over-year growth of 15%, an uptick from the earlier forecast of 12-13%. This change is largely attributed to the success of TurboTax Live, which has significantly gained market share in the assisted tax category. Additionally, Credit Karma, a part of Intuit’s portfolio, has demonstrated robust growth between 29% and 36% year-over-year in the first three quarters, demonstrating resilience amidst macroeconomic concerns. With a market capitalization of $186 billion and strong financial health metrics from InvestingPro, Intuit maintains its position as a prominent player in the software industry.

The Small and Medium Business (SMB) segment performed as expected, with stability in Mailchimp revenue counterbalancing emerging strength in the mid-market sector. Looking ahead to fiscal year 2026, Intuit has hinted at the introduction of new products featuring advanced agentic AI, which are anticipated to command higher prices.

Thill’s commentary underscores the reasons for maintaining a Buy rating and increasing the price target, citing Intuit’s strong performance and promising outlook with innovative product offerings on the horizon.

In other recent news, Intuit Inc (NASDAQ:INTU). reported impressive third-quarter financial results for fiscal 2025, surpassing both earnings and revenue forecasts. The company achieved a non-GAAP earnings per share of $11.65, exceeding the expected $10.9, and reported revenue of $7.8 billion, surpassing the anticipated $7.56 billion. This marks a 15% year-over-year revenue increase, driven by strong performances across its Consumer and Global Business Solutions Groups. The company also raised its fiscal 2025 guidance, projecting a 15% total revenue growth, up from the previous estimate of 12-13%. Intuit’s strategic focus on AI innovations and expanding its customer base were noted as key growth drivers. Additionally, Credit Karma, a part of Intuit, showed a notable 31% revenue increase. The company’s fiscal outlook remains positive, with expectations of continued growth in operating income and revenue, bolstered by AI-driven efficiency gains. Analysts have responded positively to these developments, reflecting confidence in Intuit’s strategic direction and growth prospects.

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