On Thursday, KeyBanc Capital Markets maintained a positive outlook on Intuit stock (NASDAQ:INTU), currently trading at $588.26, reiterating an Overweight rating with a steady price target of $800.00. According to InvestingPro data, the stock is trading near its 52-week low of $557.29, suggesting potential upside opportunity based on KeyBanc’s target. KeyBanc’s analyst Alex Markgraff provided insights based on a recent tax survey conducted with approximately 1,000 consumers about their tax filing plans for the year 2025. The survey, which was collected in January 2025, yielded mostly positive results, though some findings were not as positive as anticipated.
The survey highlighted several key points, including stable customer retention for TurboTax compared to previous surveys and consistent market share on a unit basis. There was also an indication of an increase in the TurboTax Live unit mix, although the uptick was smaller than expected. InvestingPro data shows Intuit’s impressive gross profit margin of 79.61% and robust revenue growth of 12.48% over the last twelve months, reflecting the company’s strong market position. Additionally, the survey suggested that Intuit’s pricing remains defensible and that the company continues to have multiple opportunities to attract tax professionals to switch to their services.
Markgraff’s discussions with Intuit’s management during the fourth quarter seemed to reveal a strong confidence in the fiscal year 2025 Consumer Group growth guidance, which forecasts a 7-8% year-over-year increase. This sentiment has been mirrored in conversations with investors. With these factors in mind, KeyBanc feels confident in maintaining estimates for the Consumer Group that are above those of other Wall Street analysts. However, the firm is looking for further data on the momentum of Full Service offerings, average revenue per user (ARPR) trends, and do-it-yourself (DIY) efforts before adopting an even more constructive stance on the stock. Investors should note that Intuit’s next earnings report is scheduled for February 25, 2025, where these trends will be closely examined. InvestingPro subscribers have access to over 15 additional key insights and a comprehensive Pro Research Report that provides deep-dive analysis of Intuit’s financial health and market position.
In other recent news, Intuit Inc. has seen significant developments. The company’s shareholders recently approved an amendment to Intuit’s Restated Certificate of Incorporation, providing certain officers with exculpation from liability in compliance with Delaware law. This change aligns with recent updates to Delaware’s legal framework and was detailed in Intuit’s Proxy Statement from November 2024.
In the realm of financial analysis, Mizuho (NYSE:MFG) maintained its Outperform rating on Intuit and increased the price target to $750 from the previous $725. The firm attributed Intuit’s slightly below market second-quarter guidance to a strategic shift in revenue from the second to the third quarter, due to the timing of promotions for Desktop TurboTax.
Piper Sandler, on the other hand, adjusted the price target for Intuit to $765 from the previous $768, retaining an Overweight rating on the stock. Despite a strong start to fiscal year 2025, Intuit’s stock has seen a 5% decrease as the company decided to maintain its full-year guidance without adjustments.
Furthermore, Intuit’s CEO, Sasan Gadarzi, and CFO, Sandeep Ojala, highlighted the transformative impact of AI on both work and personal spheres, and the company’s focus on serving mid-market and small business customers. These are some of the recent developments in Intuit’s corporate and financial landscape.
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