Jefferies raised the price target for Intuit (NASDAQ:INTU) to $600 from $525 per share in a note Monday, maintaining a Buy rating on the stock.
Analysts told investors in their FQ4 preview note that they expect a conservative FY24 guide following a "rare tax season miss" and a new CFO and head of tax at the company.
"We lower our FY24 tax growth est. to/from 8%/9% but raise Small Biz to/from 13.5%/11.7%, though both remain below Street's 9.1% & 15.6%," wrote the analysts.
"Overall, we are positive on FY24 due to potential macro soft landing, resilient Small Biz, easy Tax comp, and potential AI tailwind. INTU trades at 22x NTM EV/EBITDA, below 5-yr avg 30x," they added. Focusing on AI, the analysts stated that the company is "poised to mine gold for customers with gen AI."
"We envision gen AI use cases that could cut across INTU's portfolio, including: natural language queries; proactive alerts that could warn of negative CFs and offer a pre-approved working capital loan; and consumer alerts that bridge TurboTax, Credit Karma, and Mint to warn of potential tax underwithholdings & penalties and recommend tax strategies mid-year. These could increase customer acquisition & retention, and support premium pricing for QuickBooks and TurboTax," said the analysts.
INTU shares are up 1.2% Monday, at the time of writing, trading around the $503.67 mark.