Intuit Earns Multiple Price Target Hikes After Stellar Q4 Results: What's Driving The Bullish Outlook?

Intuit Inc INTU shares are trading higher after several analysts raised their price targets on the stock following Q4 results. 

Yesterday, the company reported Q4 EPS of $1.65, which beat the analyst consensus estimate of $1.43, and sales of $2.71 billion, which beat the analyst consensus estimate of $2.64 billion.

The company estimates FY24 revenue of $15.89 billion-$16.105 billion vs. the $15.99 billion estimate. Adjusted earnings per share are anticipated to be $16.17-$16.47 vs. the $15.95 estimate.

Maintaining an Outperform rating, Oppenheimer raised the price target to $530 (from $476), Evercore ISI Group to $530 (from $505), and Credit Suisse to $570 (from $500).

Oppenheimer analyst Scott Schneeberger raised estimates for adjusted EPS to $16.32 (from $14.22) for FY24 and $18.28 (from $15.86) for FY25. 

The analyst expects overall organic growth to remain in double-digits in coming years, expecting multi-year double-digit adjusted EPS CAGR through high-single-digit revenue growth in the Consumer tax segment, double-digit revenue growth in the Small Business segment, and high 30s+ margin. 

William Blair analyst Matthew Pfau raised the estimate for revenue to $16.046 billion (from $15.802 billion) and adjusted EPS to $16.36 (from $15.59) for FY24 and $18.183 billion (from 17.804 billion) and $19.09 (from $17.88) for FY25. 

Reiterating an Overweight rating, KeyBanc upped its price target to $535 (from $525) and Piper Sandler to $528 (from $497), while Morgan Stanley maintained its price target at $525. 

KeyBanc analyst Alex Markgraff raised the FY24 revenue estimate to $16.060 billion (from $16.000 billion, vs. consensus of $15.957 billion) on better SBSE growth, partly offset by lower Consumer and Credit Karma revenues. 

The analyst raised FY24 EBIT expectations to $6.237 billion (from $6.108 billion) on continued emphasis on operating expenses efficiency.

On the other hand, Morgan Stanley analyst Keith Weiss lowered the EPS forecast by 3% to $16.43 for FY24 and 3% to $19.41 for FY25. 

Meanwhile, the analyst raised the FY24 revenue estimate by 11.5% to $16.020 billion, assuming growth of 16.4% Y/Y in SBSE, 7.5% Y/Y in consumer, 0% Y/Y in Credit Karma businesses and 3.8% Y/Y in pro-tax.

Reaffirming a Buy rating, B of A Securities increased the price target to $580 (from $530), Stifel to $550 (from $475), Deutsche Bank to $575 (from $525), and Goldman Sachs to $595 (from $565).

Goldman Sachs analyst Kash Rangan expects revenue growth from potential GenAI integrations, B2B payments offering to increase to $4 billion-$5 billion in revenue, improving Mailchimp trends, and expected interest rates cut (starting in CY2Q24) to benefit Credit Karma guidance.

Rangan raised the EPS estimate to $16.46 (from $10.69) for FY24 and $17.83 (from $12.20) for FY25. 

Also, UBS upped the price target to $540 from $520 and maintained a Neutral rating.

Price Action: INTU shares are trading up 4.3% at $520.12 on the last check Friday.