Wall Street analysts react to Intuit analyst day

Investing.com -- Intuit's recent annual Analyst Day received positive reactions from Wall Street, with analysts highlighting the company's strategic direction, innovation in AI, and its potential to drive growth by moving upmarket.

Wolfe Research maintained an Outperform rating on Intuit (NASDAQ:INTU ), raising its price target to $725 from $710 a share.

Wolfe highlighted Intuit's focus on its new Enterprise Suite functionality, stating, "We walk away from the Analyst Day increasingly optimistic, as INTU remains a potential AI beneficiary."

The firm expressed confidence in Intuit's ability to deliver sustained double-digit revenue growth and margin expansion, especially given the company's push into artificial intelligence.

Barclays also reiterated its Overweight rating, with analysts praising Intuit's platform approach and AI evolution.

The bank noted that the Investor Day shed light on the company's strategy to move into higher average revenue per customer (ARPC) segments, particularly with the introduction of the Intuit Enterprise Suite.

"We come away more positive on Intuit post its Investor Day," Barclays analysts commented, adding that the event clarified the company's long-term growth plans.

Bank of America took a similar view, maintaining a Buy rating and a price target of $780 on the stock.

The bank emphasized the role of new accounting and tax offerings in driving the company's move upmarket, predicting strong ASP growth as a key driver.

BofA analysts noted, "Several trends suggest that steady margin expansion remains intact," and expressed confidence in Intuit's ability to sustain long-term growth.

Morgan Stanley, however, remained more cautious, maintaining an Equal-weight rating on the stock.

While the bank acknowledged Intuit's strong positioning for future growth, it raised concerns about near-term EPS performance due to increased investments.

"With increased investment likely limiting EPS upside near-term," Morgan Stanley analysts stated, "the premium valuation already reflects Intuit's positioning."

Wells Fargo also held an optimistic view, maintaining an Overweight rating. The firm highlighted the company's strategic shift to move QuickBooks upmarket and its overall platform vision as key takeaways from the event.

Source: Investing.com