Morgan Stanley analyst Keith Weiss upgraded the rating on Intuit (INTU – Research Report) to a Buy today, setting a price target of $730.00.
Keith Weiss has given his Buy rating due to a combination of factors including the robust performance of Intuit’s small business segment and the potential for margin improvements. The company’s small business division is experiencing strong growth, particularly in solutions aimed at mid-market customers, which positions it well for sustained expansion. Despite concerns about Intuit’s position in the DIY tax preparation market, these issues appear to be already reflected in the current stock price, which has underperformed relative to its peers.
Furthermore, Intuit’s recent financial results have surpassed expectations, with significant revenue and earnings growth, yet the company’s guidance remains conservative. This suggests potential for upward revisions in earnings estimates. Additionally, Intuit’s stock is trading at a discount compared to the large-cap average, which presents an attractive valuation opportunity. These factors combined have led to an increased confidence in the stock’s potential for positive revisions and growth, justifying the Buy rating.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $800.00 price target.