UPDATE: Citigroup Raises PT to $59 on Intuit
In a company update, Citigroup reiterates its Buy rating on Intuit Inc. (NASDAQ: INTU) and raises its price target to $59 from $56 on a strong underlying SMB quarter and imminent tax season.
According to Citi, “Revenue of $594M came in ~$10M ahead of our/street estimates of $583M/$581M. Small business ($384M) was largely inline with upside coming from Consumer Tax which was about $9M better than we were modeling. The mix-shift to connected services continues to drive leverage with the company showing smaller operating losses than expected in seasonally light quarter (-5% margin vs. our -9%). ... We expect Intuit will compete more aggressively in their free product where they have shown a strong ability to upsell rather than go dollar for dollar in expensive marketing campaigns.”
INTU closed at $51.75 on Thursday.
