Morgan Stanley Sees Subscription Transition Well Under Way for Intuit

In a report published Thursday, Morgan Stanley analyst Jennifer Swanson Lowe reiterated an Underweight rating and $66.00 price target on Intuit INTU. In the report, Morgan Stanley noted, “The shift to subscriptions has been a key driver behind ~12% QB rev. growth in recent years, and we think this continues as QB Online adoption grows. However, the potential for acceleration looks more remote, and sustained growth looks priced in with the stock at 20x CY15 EPS, or 1.7x growth.” Intuit closed on Wednesday at $81.06.