Intuit Inc. (INTU): Analysts Maintain Ratings While Lowering Price Targets

By Howard Kim

Last week, Intuit Inc. INTU, the maker of TurboTax software, lowered its earnings expectations for fiscal year 2017. As compared to its earlier projections of earnings of $5 per share, the company now forecasts adjusted earnings per share between $4 and $4.5 for fiscal 2017. Two analysts, Brad Zelnick from Jefferies and Gil Luria from Wedbush, weighed in on the technology company in light of these revised estimates.

On Friday, Zelnick expressed confidence that in spite of the company lowering its earnings outlook, Intuit's long-term strategy is intact. Zelnick maintained a Buy rating on the stock. However, the analyst reduced his price target for Intuit to $108, from his earlier target of $115. According to The Fly, Zelnick believes Intuit is well-placed to deliver against the revised expectations.

Brad Zelnick has rated Intuit five times since 2013 with no success and an average loss of -8.9% per INTU recommendation.

Separately, Luria maintained a Neutral rating on the stock. However, the analyst revised his price target for the stock, lowering it to $86 from the earlier target of $96. Luria said, "We see Intuit as a cycle-independent technology leader in early stages of global expansion." The analyst believes the company successfully conveyed its sharpened vision at the recently-held Investor Day. He added, "With the recent divestures the company has sharpened its focus on its operating system for small businesses and its market-leading DDIY tax preparation platform."

Gil Luria has rated the technology company 18 times since 2009, earning an 82% success rate recommending the company with a +16.9% average return per INTU rating.

Last month, Intuit announced its plans for divesting Demandforce, QuickBase, and Quicken in order to focus on its core competencies. Also, earlier this year, the company migrated some of its high volume software to a cloud-based delivery format. Luria has expressed confidence that these two changes will positively impact Intuit's growth among accountants and small businesses.

Gil Luria has rated the technology company 18 times since 2009, earning an 82% success rate recommending the company with a +16.9% average return per INTU rating.

According to TipRanks, 11 analysts have weighed in on Intuit in the last three months. Of which, six analysts are bullish on the company, four recommend staying on the sidelines, while one is bearish. The average 12-month price target between these 11 analysts is $103.88, marking a 21% potential upside from current levels.