Intuit’s Strong Financial Performance and Strategic Positioning Drive Buy Rating with Revised Target Price

DBS analyst Andy Yu CFA has maintained their bullish stance on INTU stock, giving a Buy rating on June 1.

Andy Yu CFA has given his Buy rating due to a combination of factors that highlight Intuit’s strong financial performance and strategic positioning. The company reported a significant increase in non-GAAP diluted EPS by 18% year-over-year, surpassing consensus expectations. Additionally, revenue grew by 15% year-over-year, driven by exceptional performance in its Global Business Solutions and Credit Karma segments. Intuit’s management has also raised its guidance for FY25, demonstrating confidence in its AI-driven platform strategy and the potential for continued margin expansion.
Intuit’s diversified distribution network and robust subscriber base, comprising over 100 million customers, further support its growth prospects. The company’s organic growth is bolstered by its strong brand and product portfolio, which includes well-known products like QuickBooks and TurboTax. Intuit’s focus on innovation and product development, with significant investments in R&D, positions it well to scale in the mid-market and capitalize on AI innovations. These factors, along with the potential for stronger-than-expected revenue growth and product price increases, underpin Andy Yu CFA’s Buy rating for Intuit, with a revised target price of USD875.

Yu CFA covers the Technology sector, focusing on stocks such as China Unicom (Hong Kong), GDS Holdings Ltd., and Microsoft. According to TipRanks, Yu CFA has an average return of 3.0% and a 45.83% success rate on recommended stocks.

In another report released on June 1, Stifel Nicolaus also maintained a Buy rating on the stock with a $850.00 price target.