HSBC analyst Stephen Bersey upgraded the rating on Intuit (INTU – Research Report) to a Buy today, setting a price target of $699.00.
Stephen Bersey has given his Buy rating due to a combination of factors that highlight Intuit’s strong growth potential and attractive valuation. Intuit is expected to achieve a compound annual growth rate (CAGR) of 17.2% in non-GAAP earnings per share from 2024 to 2027, which is significantly higher than the typical sector growth rate of 10-15%. This growth is driven by Intuit’s successful penetration into the mid-market subsegment, where the company sees a large, untapped market opportunity.
Moreover, Intuit’s valuation appears attractive as it trades at a price-to-earnings ratio of 23.0 times the estimated non-GAAP earnings for 2026, compared to a sector median of 22.2 times. The company’s strong focus on the U.S. market, which accounts for approximately 90% of its revenue, provides some insulation from global tariff disruptions. Additionally, the integration of AI technologies has led to significant cost savings, enhancing operating margins. These factors collectively support the Buy rating with a target price that implies a 22.9% upside.
In another report released on April 20, Wells Fargo also maintained a Buy rating on the stock with a $775.00 price target.
Based on the recent corporate insider activity of 107 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of INTU in relation to earlier this year.