Intuit Pleases Wall Street With Sales, Earnings Growth Targets

Wall Street analysts on Friday gave financial software firm Intuit (INTU) a vote of confidence after the company outlined its growth plans at an investor event. Intuit stock rose on the news.


At its virtual investor day on Thursday, Intuit reaffirmed its financial guidance for its current fiscal first quarter and full fiscal year 2022. Intuit’s fiscal year runs from Aug. 1 to July 31.

The Mountain View, Calif.-based company forecast revenue growth of 15% to 16% for fiscal 2022. And Intuit predicted adjusted earnings-per-share growth of 13% to 16%.

Intuit makes TurboTax tax preparation software as well as QuickBooks, Mint and Credit Karma products.

Targeting Consumers, Small Businesses

“We came away increasingly confident about the company’s ability to become a center for consumer finance, and an end-to-end platform for small business,” Mizuho Securities analyst Siti Panigrahi said in a note to clients. That positioning should translate to “durable top-line growth” for Intuit, he said.

Panigrahi reiterated his buy rating on Intuit stock with a price target of 640.

In afternoon trading on the stock market today, Intuit stock rose 0.4%, near 541.85.

Intuit’s planned purchase of Mailchimp will expand its addressable market opportunity in the small business segment, Oppenheimer analyst Scott Schneeberger said in a note to clients. That addressable market is now worth $290 billion, compared with its market opportunity last year of $248 billion, he said.

“We’re incrementally confident in Intuit’s potential to profitably grow organic revenue double digits for many years to come,” Schneeberger said. He kept his outperform rating on Intuit stock with a price target of 584.

Intuit Stock Is A Long-Term Leader

Intuit stock is in IBD’s Long-Term Leaders Portfolio.

Meanwhile, Intuit stock has formed a flat base with a buy point of 583.06, according to IBD MarketSmith charts. However, with the market in correction, investors should be cautious.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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