Stifel raises Intuit stock price target to $850 following strong results

On Friday, Stifel analysts increased their price target on Intuit (NASDAQ:INTU) shares to $850, up from $725, while reiterating a Buy rating on the stock. The revised target comes after Intuit reported robust performance that saw its shares rise approximately 8% in after-hours trading. The company’s upward trajectory is credited to its successful expansion into the upmarket segment. According to InvestingPro data, 20 analysts have revised their earnings upward for the upcoming period, with analyst targets ranging from $560 to $875. Trading near its 52-week high of $734.18, InvestingPro’s Fair Value analysis suggests the stock is currently overvalued.

Intuit’s Consumer Tax segment experienced an 11% growth, exceeding expectations, primarily driven by a 47% increase in TurboTaxLive. The Global Business Services (GBS) division also saw an impressive 19% growth, with Intuit’s Ecosystem Solutions and QuickBooks Online Accountant (IES/QBOA) products leading the charge with a 40% year-over-year increase. The company’s management team spotlighted a range of forthcoming Agentic offerings within the QuickBooks (QB) business, which are anticipated to further enhance Average Revenue Per User (ARPU) and bolster customer retention rates. InvestingPro data reveals impressive financial metrics, including an industry-leading gross profit margin of 80.26% and robust revenue growth of 15% over the last twelve months.

While the Mailchimp acquisition continues to present execution challenges, Intuit’s online-services segment remains robust, fueled by the Money platform and Payroll services. Analysts at Stifel believe that the company’s recent results indicate a continuing trend of market share gains within the assisted tax category. They also project that the resilience shown in the GBS segment, excluding Mailchimp, will support Intuit in maintaining a low-teens revenue growth rate in the near term. With a market capitalization of $200.88 billion and an overall Financial Health Score of "GREAT" on InvestingPro, investors can access detailed analysis and 18 additional exclusive ProTips about Intuit through the platform’s comprehensive Pro Research Report.

In other recent news, Intuit has reported impressive third-quarter results, leading several financial firms to adjust their price targets for the company. KeyBanc Capital Markets raised its target to $850, citing strong top-line growth and robust performance from TurboTax and Credit Karma. Piper Sandler also increased its target to $825 following Intuit’s earnings report, which revealed revenues of $7.75 billion and an EPS of $11.65, both surpassing expectations. BMO Capital Markets adjusted its price target to $820, highlighting the company’s significant growth in its Consumer segment and Credit Karma’s contribution to an 18.5% increase in EPS.

RBC Capital also revised its price target to $850, attributing the change to a strong tax season and momentum in Intuit’s Global Business Solutions. Jefferies lifted its target to $850, maintaining a Buy rating, and emphasized Intuit’s consistent performance and the market share gains of TurboTax Live. Across the board, analysts have noted Intuit’s successful integration of artificial intelligence into its offerings, enhancing customer experiences and driving growth. The company’s updated guidance for fiscal year 2025 reflects a projected year-over-year growth of 15%, up from previous estimates. These developments underscore the positive sentiment among analysts regarding Intuit’s financial trajectory and market position.

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