Credit Suisse Likes Intuit's Story, But There's A Catch; Slaps $100 Price Target On Stock

Intuit Inc. INTU shares have gained 6 percent year-to-date. Credit Suisse’s Michael Nemeroff initiated coverage of the company with a Neutral rating and a price target of $100.

Intuit Poised For Robust Long-Term Revenue Growth

Analyst Michael Nemeroff believes that Intuit’s leading position in the small business financial management and tax preparation software markets, deep industry expertise and wide range of products for businesses and individuals will drive strong new customer growth and high single-digit long-term revenue growth.

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Intuit is likely to continue penetrating the huge market for SMB financial management software via new subscriber additions across existing as well as new geographies. Rising attach rates to payroll and payments solutions could also boost growth, Nemeroff stated.

Intuit’s FY16 revenues and EPS are estimated at $4.56 billion and $3.48, respectively. The company’s revenues and EPS are expected to increase to $5.02 billion and $4.25, respectively, in FY17.

Intuit’s shares are currently trading at a premium to the peer group, which appears justified by expectations of the company’s robust growth, Nemeroff said. He added that the current stock valuation fully reflects the risk/reward.