Bank of America Securities analysts continue to see favorable risk/reward for shares of Intuit Inc going forward as they viewed the financial software company’s fourth-quarter financial results as being generally “healthy” although its full-year 2024 guidance was “mixed”.
In a note to clients, they raised their price objective on Intuit to $580 per share from $530, while reiterating their ‘Buy’ rating, “to reflect the better small business outlook and potential for upside to derisked consumer tax outlook from here”.
“We see potential for a return to mid/high teens revenue growth, with potential consumer tax upside as we move through the tax season, from 1) from full service and 2) the potential for normalized return and share dynamics,” the analysts wrote.
Analysts at Bank of America expect the company’s QuickBooks product to drive revenue upside but that will be offset by a “somewhat disappointing” outlook for Intuit’s TurboTax software.
They added that a better outlook for small business growth of 16% to 17% is muted by a lower consumer tax growth outlook for 7% to 8%.
Shares of Intuit rose 3% to $514.97 in early-afternoon trading on Friday and have gained 32% year to date.
Contact Sean at sean@proactiveinvestors.com