By Sam Boughedda
Intuit (NASDAQ:INTU) shares are up over 1% Friday after the company held its annual investor day, with analysts providing positive commentary following the event.
"Management, as is typical, did an excellent job highlighting the numerous growth drivers in front of the company over the next several years," Stifel analysts said in a research note.
"Despite some expected near-term moderation in the Credit Karma business (management expects 1H rev growth in the mid-single digits), we believe the company is well positioned to weather the current economic storm aided by the tax business (35% of revenue), a high level of subscription revenue (~80%) in the Small Business Segment and very disciplined OPEX focus," added the analysts. The analyst cut the firm's price target on the stock to $475 from $525, maintaining a Buy rating.
Meanwhile, Wolfe Research analysts told clients that they walked away from the event "incrementally more confident" and reiterated their Outperform rating and $560 price target.
"The company outlined their refreshed five big bets, stepped through a massive $312B TAM, and demoed new product features," explained the analysts. "INTU plans to be a one-stop SuperApp for consumer and commercial financial interactions, with a leadership team and tech stack that screams "Yes We Can!" With Sasan saying not once but three times (and management reiterating guidance) that the company took its guidance very seriously and feels very good about the guidance, we would take the company at their word."
Finally, Morgan Stanley analysts, who have an Overweight rating and $550 price target on Intuit, said the company's expanding market opportunity with new products "should drive subscriber stickiness and ARPU growth, as well as attract new customers."
"Importantly, the focus on margin expansion should support 20%+ EPS growth going forward, keeping us at OW for a best-in-class SMB software asset," added the analysts.