Deutsche Bank: We Expect A Beat For Intuit

In a report published Thursday, Deutsche Bank analysts maintained a Hold rating on

, with a price target of $100, ahead of the company's earnings release. Intuit is scheduled to reports its F3Q15 results on May 21. The analysts expect "upside to consensus at $2131m/$2.73, benefiting from solid growth in DIY returns enabling share gains in the consumer tax category and continued momentum in QBO subscriber adds." The analysts believe that the robust trends would continue in QuickBooks Online subscriber growth, which grew 50 percent y/y in the previous quarter. On the other hand, desktop unit growth may decline further, following the 7 percent downturn y/y in 2Q. In the report Deutsche Bank noted, "We expect Intuit to add roughly 85k net QBO customers (up 48% y/y) and the total number of QBO subscribers to total 925k at the end of the quarter. We expect a similar tone this quarter where the company likely maintains the 2m target for FY17." Intuit may have increased its market share by another point, versus the 61 percent in FY14. The EPS estimates for FY15 and FY16 have been raised from $2.48 to $2.58 and from $3.75 to $3.85, respectively.