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On Friday, KeyBanc Capital Markets sustained its Overweight rating on Intuit (NASDAQ:INTU) shares, maintaining a $770.00 price target. According to InvestingPro data, the stock is currently trading near its Fair Value, with analyst targets ranging from $530 to $860. The company maintains impressive gross profit margins of nearly 80% and has shown strong financial health, earning a "GREAT" overall score from InvestingPro’s comprehensive analysis. KeyBanc’s analyst Alex Markgraff provided an update on the company’s performance, noting an uptick in Average Revenue Per Transaction (JO:NTUJ) (ARPT) growth mid-season, which is currently at 6.0% year-over-year. This marks an increase from the previously reported 3.5% and is tracking ahead of the growth observed at the same point in the previous year. This growth aligns with Intuit’s broader revenue trajectory, as InvestingPro data shows the company achieved a 13.7% revenue growth in the last twelve months, with total revenue reaching $17.2 billion.
Intuit’s Key First Look/TurboTax analysis, incorporating data through March 23, 2025, revealed a positive shift towards larger transactions. Transactions exceeding $200 now represent an 11% mix, indicating potential growth within the TurboTax Live product suite. Despite these positive trends, IRS filing data suggests that the 2025 tax season is off to a slow start, with expectations of approximately flat filer growth.
The analyst reiterated the Overweight rating, reflecting a continued positive outlook on Intuit’s revenue growth for the fiscal year 2025. The forecast includes an estimated 7% growth in Average Revenue Per User (ARPR) and a modest acceleration in TurboTax Live revenue growth. This optimistic stance aligns with KeyBanc’s expectations that Intuit will outperform Street projections for consumer group revenue in FY25. InvestingPro analysis reveals the company’s strong financial foundation, with a healthy current ratio of 1.27 and moderate debt levels, supporting its growth trajectory.
Intuit, known for its financial software products such as QuickBooks, TurboTax, and Mint, has been closely monitored by investors and analysts alike, particularly during the tax season when its products and services are in high demand. The latest analysis by KeyBanc suggests that while the tax season may be experiencing a slow start, the underlying metrics of Intuit’s offerings, especially TurboTax Live, are showing signs of robust performance.
The reaffirmed Overweight rating and price target by KeyBanc underscore their confidence in Intuit’s strategic positioning and product mix, which are expected to drive revenue growth in the current fiscal year. InvestingPro subscribers can access over 15 additional exclusive ProTips and a comprehensive analysis of Intuit’s financial health, valuation metrics, and growth prospects through the platform’s detailed Pro Research Report, available for over 1,400 top US stocks.
In other recent news, Intuit Inc. has reported robust earnings that exceeded expectations, with its Consumer Group revenue outperforming forecasts despite a slow start to the tax season. This success was partly due to increased customer engagement with professional advice and additional services. The company’s Online Ecosystem revenue also saw significant growth, with a 21% increase, while Online Services revenue expanded by 19%, aided by strategic AI investments leading to $90 million in annualized efficiencies. Mizuho (NYSE:MFG) Securities reiterated its Outperform rating, raising the price target to $765, reflecting confidence in Intuit’s growth potential, particularly in its TurboTax franchise and the undervalued Credit Karma operation.
KeyBanc Capital Markets maintained an Overweight rating with a $770 price target, citing a slight increase in Average Revenue Per Transaction (ARPT) growth and optimism for consumer group revenue growth. Stifel analysts also upheld their Buy rating with a $725 price target, highlighting a 30% increase in online services revenue and a strong start to the tax season. Meanwhile, Scotiabank (TSX:BNS) adjusted its price target to $600, maintaining a Sector Perform rating despite Intuit’s strong earnings performance. These developments underscore a varied but generally optimistic outlook from analysts on Intuit’s financial trajectory.
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