Intuit Stock (INTU) Rockets Higher Helped by AI and Tax Demand Boost

Shares in global financial technology firm Intuit (INTU) powered 8% higher today on hopes that its AI and tax drive will continue boosting its numbers.

Digestible AI

Four-star-rated TipRanks analyst Arjun Bhatia of William Blair, who reiterated his Outperform rating on the stock and $719.10 price target, said the company’s use of AI had already led to high returns on investment and was “easily digestible” for consumers.

He was also encouraged by Intuit declaring in its Q3 earnings this week that it would be launching new AI agents across its platforms over the next few weeks.

The company behind software programs such as TurboTax and QuickBooks announced forecast-beating earnings per share (EPS) of $11.65 and revenue of $7.75 billion.

Management said this was due to robust sales of its business software products during the recently completed tax season.

Tax Growth

Bhatia said he was pleased to see the strong tax performance and believes this is a good sign for more progress in future years.

“One of the most significant near-term concerns investors had about the business [was tax]. The tax filing season was strong. With early signs of progress in tax upmarket, we believe a material overhang has been lifted,” he said. “We believe the valuation is attractive for a business that should grow revenue mid-teens between 15% and 20%.”

Indeed, the only drawback Bhatia sees is the continued headwind of its Mailchimp marketing and social media service

BMO Capital also raised the firm’s price target to $820 from $714. It noted the growth in the firm’s consumer segment, most notably again TurboTax.

Is INTU a Good Stock to Buy Now?

On TipRanks, INTU has a Strong Buy consensus based on 20 Buy and 1 Hold rating. Its highest price target is $850. INTU stock’s consensus price target is $738.55 implying an 2.78% upside.

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