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Shares of Intuit Inc INTU were dipping on Friday, even after the company reported upbeat quarterly results.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
BofA Securities On Intuit
Analyst Brad Sills reiterated a Buy rating, while raising the price target from $730 to $780.
Intuit delivered “solid” quarterly results, “with $100 million upside to total revenue led by better small business growth (20% versus our 17%) and Credit karma growth (14% versus our 3%),” Sills said in a note. The fiscal 2025 guidance was broadly in-line with expectations, he added.
Management lowered the long-term growth outlook from 8%-12% to 6%-10%, providing “a more reasonable expectation and one that could be exceeding with better traction in the new full-service segment,” the analyst stated. “The AI enabled Intuit Assist offering has potential to accelerate this effort, via more automated returns processing and targeted marketing,” he further wrote.
Check out other analyst stock ratings.
JPMorgan On Intuit
Analyst Mark Murphy reiterated a Neutral rating, while lifting the price target from $585 to $600.
Total revenue growth of 17% was much higher than expected, Murphy said. The company achieved “good profitability, though there is some degradation in the FCF margin for which we don’t entirely understand the drivers,” he added.
The full-year guidance coming in-line to slightly above expectation is a “positive development given the choppy macro and SMB exposure,” the analyst stated. “We do recognize that the FY25 guidance framework is heavily back-end loaded, but see this as an accounting dynamic and aren’t overly worried given Intuit’s history of execution,” he further wrote.
Goldman Sachs On Intuit
Analyst Kash Rangan maintained a Buy rating and price target of $765.
The company reported solid results with “metrics largely achieved” and announced full-year guidance that aligned with consensus “across key metrics,” Rangan said in a note.
“As management focuses on the mid-market (characterized by more complex customers), we believe Intuit’s AI investments (like Intuit Assist – a Gen-AI tool) can yield dividends,” the analyst wrote. “With the heightened requirements of more complex customers, AI investments could help address needs that complement its already leading capabilities (e.g., more complex bookkeeping and accounting), while potentially expanding into nascent areas, like helping perform CFO-esque tasks,” he added.
INTU Price Action: Shares of Intuit had declined by 7.77% to $613.62 at the time of publication on Friday.
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