Intuit’s Strong Performance and Promising Prospects: A Buy Recommendation by Arjun Bhatia

William Blair analyst Arjun Bhatia has reiterated their bullish stance on INTU stock, giving a Buy rating today.

Arjun Bhatia has given his Buy rating due to a combination of factors that highlight Intuit’s strong performance and promising future prospects. The company demonstrated robust growth in its tax business during a critical third quarter, with total revenue increasing by 15%, surpassing consensus estimates. This growth was fueled by the consumer segment, which exceeded expectations, and notable performance in Credit Karma, alongside stability in the small and medium-sized business (SMB) sector.
Furthermore, Intuit’s TurboTax Live revenue saw a remarkable 47% growth, significantly accelerating from the previous year’s figures. The company’s strategic initiatives in the midmarket are also progressing well, with products like QBO Advanced and Intuit Enterprise Suite experiencing substantial growth. Additionally, Intuit’s plans to launch AI agents across its platform are expected to enhance its ‘done-for-you’ strategy, contributing to a positive long-term outlook. Despite challenges with Mailchimp, the overall outlook remains optimistic, supported by strong tax results and increased full-year guidance.

In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $850.00 price target.