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On Monday, Stifel analysts reiterated a Buy rating and maintained their $850 price target on Intuit (NASDAQ: NASDAQ:INTU) stock, targeting roughly 13% upside from the current price of $753.47. The decision follows a detailed discussion with Intuit’s management after the company’s recent earnings report. According to InvestingPro data, the stock is currently trading near its 52-week high of $761.02.
During the conversation, several key topics were explored, including Intuit’s pricing strategy and the growth drivers for TurboTax Live units. The discussion also covered the click-through rate from Credit Karma to TurboTax, business tax developments, and the acceleration of the online ecosystem. With impressive gross profit margins of 80.26% and revenue growth of nearly 15% over the last twelve months, Intuit continues to demonstrate strong operational efficiency.
Analysts noted the potential for new offerings within Intuit’s online ecosystem, as well as opportunities in the Intuit Expert Services (IES) segment. Despite some challenges faced by MailChimp, the analysts expressed confidence in Intuit’s ability to sustain low-teens revenue growth in the near term. For deeper insights into Intuit’s valuation and growth metrics, InvestingPro subscribers can access 20 additional ProTips and comprehensive financial analysis.
The analysts highlighted that Intuit’s core growth drivers, such as payments volume and pricing, along with new initiatives like the integration of Credit Karma with TurboTax, are expected to mitigate any headwinds. With a market capitalization of $210 billion and an overall "GREAT" financial health score from InvestingPro, the company appears well-positioned to execute its growth strategy. The conversation provided insights into how Intuit plans to offset challenges and capitalize on new growth opportunities.
In other recent news, Intuit has reported impressive financial results, surpassing expectations with a 15% year-over-year revenue increase to $7.8 billion, outperforming the anticipated $7.56 billion. The company’s earnings per share also exceeded forecasts, coming in at $11.65 compared to the expected $10.93. Stifel analysts have responded to these strong results by raising their price target for Intuit to $850, reaffirming a Buy rating. Similarly, Evercore ISI increased its price target to $785, maintaining an Outperform rating, citing robust performance across Intuit’s business segments, including a notable 47% growth in TurboTax Live.
Mizuho (NYSE:MFG) Securities also reiterated an Outperform rating with an $825 price target, highlighting Intuit’s strategic pricing adjustments and potential revenue growth from new artificial intelligence offerings. Intuit’s recent price increases for its QuickBooks products are seen as a strategic move to enhance revenue streams, with management expressing confidence in maintaining low customer turnover. The company has also updated its full-year guidance, now expecting mid-point revenue of $18.74 billion, up 15% from the previous forecast.
Intuit’s Global Business Services division reported a 19% growth, driven by a 40% increase in Intuit Ecosystem Solutions and QuickBooks Online Accountant products. Despite challenges with Mailchimp, Intuit’s online services continue to perform well, supported by its Money platform and Payroll services. Analysts suggest that these developments indicate strong market share gains within the assisted tax category, projecting continued revenue growth in the near term.
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