Benzinga -
- Piper Sandler analyst Arvind Ramnani maintained Intuit Inc (NASDAQ: INTU) with an Overweight and raised the price target from $459 to $510.
- Intuit's 2Q results beat expectations, driven by Small Business (Quick Books), a faster-forming tax season, and modestly better performance in Credit Karma.
- While INTU reiterated full-year targets, they repeatedly emphasized derisked outlook for the entire business.
- From a product perspective, INTU enhanced its product offering with AI, and the online payment volume was up 25%. They saw greater adoption of auto-enabled invoices, instant payments, and B2B payments, a secular growth driver, with 70% of B2B transactions still completed with checks.
- KeyBanc analyst Josh Beck reiterated an Overweight and $450 price target.
- Intuit beat revenue expectations on the back of Small Business and Self Employed Unit and Consumer upside, while Credit Karma was more in line and reiterated the FY outlook, underscoring the diversity of Intuit franchise.
- Sandeep Aujla will take over the CFO reins from the well-respected Michelle Clatterbuck in what looks to be a seamless transition.
- Beck highlighted SMB resilience in the face of macro uncertainty, 25% payments volume growth, rising TurboTax awareness, low-teens Mailchimp growth driven by higher effective prices, conversion gains, and Credit Karma results.
- The analyst modestly raised estimates primarily on higher SBSE assumptions and believed INTU remains a highly durable franchise with the focus likely to shift toward Turbotax prospects.
- The analyst held a positive bias given increased awareness, Live adoption, and more of a 'normal' season given early formation trends and the rising attach rate within online services.
- Oppenheimer analyst Scott Schneeberger reiterated Outperform and the $476 price target.
- The analyst anticipated organic growth to remain in double-digits long-term, partly due to TurboTax's anticipated penetration into the professionally prepared tax market and revenue synergies from its Credit Karma and Mailchimp acquisitions.
- Price Action: INTU shares traded higher by 3.73% at $427.25 on the last check Friday.
- Photo by Mike Mozart via Flickr
| Feb 2022 | Keybanc | Maintains | Overweight | |
| Feb 2022 | Deutsche Bank | Maintains | Buy | |
| Feb 2022 | Oppenheimer | Maintains | Outperform |
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