Analysts Bullish On Intuit's AI Strategy Following Solid Q2 Performance (CORRECTED)

Editor's Note: The article has been corrected to note that this was Intuit's second-quarter earnings report.

Intuit Inc INTU reported in-line revenues but managed an earnings beat in the second quarter.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.

Stifel On Intuit

Analyst Brad Reback maintained a Buy rating, while raising the price target from $600 to $720.

Intuit reported “solid” second-quarter results “as resilient small business segment results offset a slow start to tax season due to a one-week delay in IRS opening,” Reback said in a note.

“Small business results were led by online services ~4 point sequential acceleration to 24% as Payroll and Payments (1st full quarter of price increase) lead the way,” the analyst wrote. “The Credit Karma segment remained a laggard as a select set of partners continue to tighten lending standards,” he added.

Mizuho Securities On Intuit

Analyst Siti Panigrahi reaffirmed a Buy rating, while lifting the price target from $670 to $725.

Intuit reported in-line revenues, “driven by a miss in Consumer revenue offset by strength in SBSE,” Panigrahi said. “Given the shift in tax revenues, management guided FQ3 revenues above consensus and reiterated its FY24 guidance (which we continue to view as conservative),” he added.

The analyst further stated that there are “several upside drivers” for fiscal 2024, including the return to a normalized tax season, “greater penetration of TT Live FS/Business Tax (especially with new initiatives for Full Service),” acceleration of small business and strength in online services, including Bill Pay upside.

Check out other analyst stock ratings.

Oppenheimer On Intuit

Analyst Scott Schneeberger reiterated an Outperform rating, while raising the price target from $678 to $712.

Intuit reported its fiscal second-quarter results ahead of the guidance “as total revenue/adjusted operating income/ EPS grew 11%/17%/20% y/y, respectively, all exceeding our estimates/consensus,” Schneeberger said.

The company’s Small Business segment was the primary upside driver, “delivering a second consecutive quarter of significantly higher than expected margin,” the analyst stated. “Intuit maintained its now seemingly even more achievable FY24 guidance,” he added.

Piper Sandler On Intuit

Analyst Arvind Ramnani reiterated an Overweight rating, while lifting the price target from $642 to $750.

Intuit’s fiscal second-quarter performance was driven mainly by the Small-Business and Self-Employed segment, Ramnani said. “Additionally, ProTax contributed nicely (+8%) reflecting tax form delivery timing,” he added.

“In our view, Intuit is uniquely positioned to benefit from its early investments in AI, given its large customer base and specific workflows that it provides its customers,” the analyst further wrote.

William Blair On Palo Intuit

Analyst Matthew Pfau reaffirmed an Outperform rating on the stock.

Intuit reported its second-quarter revenue in-line with expectations, while beating the consensus on non-GAAP EPS by 14%, Pfau said. “The outperformance was predominantly driven by strength in ProConnect,” he added.

“We believe the guidance is reasonable, but with tax season still early and continued macro uncertainty it is hard to call for revenue upside; however, there is likely upside to the earnings guidance,” the analyst further wrote.

INTU Price Action: Shares of Intuit had risen by 0.87% to $663.64 at the time of publication Friday.

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