Intuit Stock Gains Momentum: AI Integration and International Expansion Drive Optimistic Outlook

Intuit stock held at Outperform, with promising AI and international expansion opportunities By Investing.com

On Friday, Evercore ISI maintained a positive outlook on Intuit (NASDAQ:INTU), reiterating its Outperform rating and a $725.00 price target. The firm highlighted several growth factors for the company, emphasizing the expansion of INTU assist to approximately one million mid-market businesses. This move taps into a significant total addressable market (TAM) for mid-sized companies, where competition is notably scarce for businesses with over 100 employees. The strategy of building a unified ecosystem continues to gain traction among Intuit's customer base, which could be a driving force for growth as the company targets upmarket opportunities. This approach is expected to encourage customers to streamline and leverage their financial data more effectively. Additionally, attach rates for AI assist features are reportedly higher than for non-AI related services, which could contribute to a more engaged and loyal customer base as these services become monetized. Intuit's recent decision to increase prices for QuickBooks Online has shown positive results, with a 17% growth in revenue last quarter and a continued rise in customer numbers. Furthermore, Credit Karma, a part of Intuit's portfolio, reported a year-over-year increase of 5 percent in revenue, reaching $1.7 billion for the fiscal year 2024. This growth was supported by credit card and automotive insurance sectors. The company also sees significant growth potential in international markets, which remains a key focus for future expansion. Intuit has underscored this by renaming its SMB & Self-Employed segment to Global Business Solutions Group, indicating a strategic emphasis on global outreach. In other recent news, Intuit Inc (NASDAQ:INTU). has been gaining investor confidence following its strong fourth-quarter performance for the fiscal year 2024 and optimistic projections for 2025. The financial software company reported a revenue upside of $99 million against consensus estimates, with significant contributions from the small and medium-sized business (SMB) sector and the consumer tax platform Credit Karma. Intuit's adjusted earnings per share for the quarter surpassed the analyst consensus, and revenue rose 17% year over year. Moving forward, the company's strategy includes a focus on average revenue per customer through pricing and product mix. This approach is expected to drive sustainable growth in both the SMB and consumer segments. Citi, a major financial institution, has maintained its Buy rating on Intuit and raised its shares target, reflecting this optimistic outlook. However, recent developments also include a note of caution regarding the medium-term guidance for the tax segment and a long-term cut in SMB unit expectations. Despite these concerns, Intuit's initial guidance for the fiscal year 2025 exceeded expectations, with the company anticipating an acceleration in SMB growth. Evercore ISI's positive stance on Intuit is echoed by several metrics and InvestingPro Tips that underline the company's robust financial health and market position. Intuit's remarkable gross profit margin of almost 79.49% in the last twelve months as of Q3 2024, according to InvestingPro Data, demonstrates its ability to maintain high profitability amidst its expansion efforts. Additionally, the company's revenue growth of 12.39% in the same period signifies a strong upward trajectory, supporting the strategic initiatives highlighted by Evercore ISI. InvestingPro Tips also reveal that Intuit has been a consistent performer with a history of raising its dividend for 14 consecutive years, which may appeal to income-focused investors. Moreover, the company is recognized as a prominent player in the Software industry, with a strong return over the last five years, indicating its competitive edge and investor confidence. While Intuit trades at a high earnings multiple, with a P/E ratio of 60.79, this reflects the market's high expectations for the company's future earnings potential, particularly as it taps into the mid-market businesses and leverages AI technologies for customer engagement. For investors seeking further insights, there are additional InvestingPro Tips available at: https://www.investing.com/pro/INTU, which provide deeper analysis and metrics to inform investment decisions.

Intuit stock target raised by BofA on solid growth prospects By Investing.com

BofA Securities has updated its outlook for Intuit (NASDAQ: NASDAQ:INTU), a financial software company, increasing the price target to $780 from the previous $730 while maintaining a Buy rating on the stock. The firm's analyst cited the company's ability to sustain mid-teen growth rates as a key factor for the positive stance. According to the analyst, Intuit's growth is expected to continue, supported by its pricing power, market expansion, and enhanced functionality that increasingly substitutes traditional CPA roles. Intuit's growth strategy, which now focuses more on average revenue per customer (ARPC) within its QuickBooks and TurboTax product lines, is seen as a viable approach to maintain its robust growth trajectory. The analyst believes that the company's leverage from a shared data, services, and operational platform will enable it to achieve significant scale. The revised price objective represents a 37 times multiple of the company's forecasted calendar year 2025 free cash flow (FCF), an increase from the previous 35 times multiple. This adjustment reflects higher FCF estimates and positions the company at a premium compared to the general large-cap growth at a reasonable price (GARP), which typically trades at 1.1 times adjusted for FCF durability. In other recent news, Intuit reported strong fourth-quarter earnings for fiscal year 2024, surpassing analyst expectations, and provided robust guidance for fiscal year 2025. The financial technology company saw a revenue increase of 13.3% for the fiscal year 2024, with an operating margin of 39.3%. For the upcoming fiscal year, the company anticipates steady growth of 12-13% and an operating margin expansion of approximately 60 basis points. Meanwhile, Jefferies maintained a Buy rating on Intuit shares and increased the price target to $790, citing the company's consistent growth and expanding margins. Similarly, Evercore ISI reiterated its Outperform rating and a $725.00 price target, emphasizing the company's potential growth factors such as the expansion of AI assistance to approximately one million mid-market businesses. Citi also maintained its Buy rating and raised its shares target for Intuit, reflecting confidence in the company's strong fourth-quarter performance and optimistic projections for 2025. These recent developments indicate a positive outlook for Intuit, backed by strong financial performance and strategic direction.