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On Wednesday, Stifel analysts reiterated their Buy rating and $725.00 price target for Intuit stock (NASDAQ:INTU), following the company’s strong performance in the second quarter. According to InvestingPro data, Intuit currently trades at $622.02 with a market capitalization of $175 billion, and analysis suggests the stock is currently fairly valued based on comprehensive Fair Value models. The report highlighted several key areas of growth for the software giant, including a roughly 30% increase in online services revenue from Payments/Payroll, excluding Mailchimp.
Intuit also saw a quarter-over-quarter acceleration in online accounting growth to 22%, benefiting fully from earlier pricing actions. The company experienced a robust beginning to the tax season, with revenue growth of approximately 3% year-over-year, surpassing management’s initial expectations of a low-single digit decline. This was attributed to an increase in both the number of tax returns filed and the average revenue per filer.
Credit Karma, part of Intuit’s product portfolio, delivered solid results as well. Operating income exceeded expectations, even as hiring met forecasts, indicating that management has been effectively managing expenses.
Stifel’s analysis suggests that Intuit’s results demonstrate the resilience of the Office of the CFO and the company’s potential to benefit from stronger economic growth. The report further states that Intuit is well-positioned to achieve durable double-digit growth in the coming years, as it continues to expand its up-market presence and further develops its Live and AI initiatives.
Management at Intuit has chosen not to update its guidance until after the tax-heavy third quarter, a decision that aligns with the company’s historical approach to forecasting. With analyst targets ranging from $530 to $860 and an overall Financial Health score of "GOOD" from InvestingPro, investors can access detailed valuation metrics, 15+ additional ProTips, and comprehensive research reports through the platform’s premium features.
In other recent news, Intuit’s financial performance and analyst ratings have been under scrutiny. The company reported strong second-quarter results, with revenues reaching $3.96 billion, surpassing forecasts by approximately $120 million, and earnings per share (EPS) of $3.32, exceeding expectations by $0.75. Piper Sandler responded by raising the price target to $785, maintaining an Overweight rating, reflecting confidence in Intuit’s growth trajectory. In contrast, BMO Capital Markets reduced the price target to $714 but upheld an Outperform rating, noting robust growth in Credit Karma and QuickBooks Online. BofA Securities also adjusted its price target to $740, citing a contraction in sector multiples but maintaining a Buy rating due to Intuit’s strategic progress.
Evercore ISI lowered its target to $700 while keeping an Outperform rating, expressing optimism about Intuit’s tax season and QuickBooks Online ecosystem. Meanwhile, Morgan Stanley (NYSE:MS) upgraded Intuit’s stock rating to Overweight, setting a new price target of $730, highlighting the strength of the small business segment and potential margin improvements. These recent developments showcase varied analyst perspectives on Intuit’s performance and future prospects, with a focus on its earnings, growth strategies, and market position.
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