Intuit (INTU – Research Report), the Technology sector company, was revisited by a Wall Street analyst on April 19. Analyst Steve Enders from Citi maintained a Buy rating on the stock and has a $744.00 price target.
Steve Enders has given his Buy rating due to a combination of factors influencing Intuit’s stock performance. Enders acknowledges the solid year-over-year (y/y) growth in overall tax filing data, noting a 1.9% increase as the tax season nears its completion. This uptick from 0.5% in the previous week suggests a resilient performance. Moreover, the self-preparation e-filings, a segment that likely includes most TurboTax users, have seen a more significant increase of 2.7% y/y. Despite the shorter period remaining compared to last year, which presents some timing risk, the growth in filings is seen as a positive sign and a testament to the company’s strong market presence.
Furthermore, the adoption of TurboTax Live services could potentially bolster the average revenue per user (ARPU), providing additional support for the stock’s valuation. In a comparative sense, the filings are slightly trailing on a percentage of the tax season basis, yet they remain solid when contrasted with historical averages. While being cautious about projecting too much optimism due to fewer days left in the season, the overall upward trajectory in filings—especially in self-prepared e-filings, which benefit from a secular trend towards electronic filing—paints a promising picture for Intuit’s financial prospects. This underpins Enders’s confidence in the stock and substantiates his Buy rating, with an expected share price return of 22.9%.
In another report released on April 15, Oppenheimer also maintained a Buy rating on the stock with a $712.00 price target.
INTU’s price has also changed moderately for the past six months – from $521.520 to $605.170, which is a 16.04% increase.
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Intuit (INTU) Company Description:
Incorporated in 1983, California-based Intuit, Inc., a software company, provides financial management solutions and compliance products and services for small businesses, accountants, and individuals. It operates through the following segments: Small Business and Self-Employed Group; Consumer Group; ProConnect Group and Credit Karma.
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