For small- and medium-sized businesses, reaching consumers is the key for growth. Intuit Inc. (INTU) understands this well, and that understanding led to its high-profile acquisition of Mailchimp, announced this week. The financial software company is planning a shift toward AI, and believes Mailchimp’s suite of marketing tools will aide in this endeavor. (See Intuit stock charts on TipRanks)
Kenneth Wong of Guggenheim Partners reported on the development, asserting that the match is a “strong strategic pairing,” and that Mailchimp’s variety of CRM, marketing, and commerce solutions will complement Intuit’s software offerings.
Wong reiterated a Buy rating on the stock, but did not provide a price target.
The analyst wrote that the acquisition of the small enterprise marketing company is expected to close by the end of the 2022 fiscal year.
The price tag of the deal, $12 billion, is not expected to cause negative shifts in Intuit’s share repurchasing schemes or its payments of dividends to shareholders.
Intuit is more well-known for its financial software program, TurboTax. Wong added that its “dominant financial management offerings” of accounting, payroll, and payments tools are to be extended, using Mailchimp’s unique technology.
On TipRanks, INTU has an analyst rating consensus of Strong Buy, based on 14 Buy ratings and 1 Hold rating. The average Intuit price target is $626.25, representing a potential 12-month upside of 10.92%. This statistic is accurate as of 11:09am EST Tuesday.
Disclosure: At the time of publication, Brock Ladenheim did not have a position in any of the securities mentioned in this article.
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