Piper Sandler raised its price target on Intuit to $290 from $250, citing higher free cash flow margins, while keeping an Underweight rating on the stock. The shares traded at $348.64, down 45% year-to-date.
The firm’s upgrade follows Intuit’s fourth-quarter results, which showed revenue growth of 13.7% year-over-year to $6.1 billion, exceeding the consensus estimate of 11.5%. Non-GAAP earnings per share reached $4.03, surpassing expectations of $3.58, while the operating margin expanded to 33.3% from the projected 30.7%.
Intuit’s fiscal 2027 revenue guidance midpoint of $23.396 billion implies 9.1% growth, below the consensus estimate of 11.1% and $23.736 billion. The company lowered its three-year compound annual growth rate target for its Global Business Solutions Group to 10%-15% from 15%-20%, and reduced its Consumer Growth target to 4%-8% from 6%-10%.
Other analysts adjusted targets after the results. Mizuho reiterated an Outperform rating with a $430 target, while BMO Capital maintained an Outperform rating at $412. Stifel raised its target to $300 from $275 but kept a Hold rating. Wells Fargo cut its target to $300 from $360, and Morgan Stanley lowered its target to $315 from $335, both maintaining Equal Weight ratings.
Piper Sandler noted Intuit faces growth headwinds in TurboTax DIY, Desktop comparisons, Credit Karma prudence, and slower QuickBooks Online growth. The firm added that rebuilding credibility after a third-quarter tax miss will require time and steady execution.
