Intuit Now Worth $95/Share, This Analyst Says

In a report published Wednesday, Wedbush analysts maintained a Neutral rating on Intuit Inc.. INTU, while raising the price target from $92 to $95. The analysts see Intuit as a cycle-independent technology leader in early stages of expansion. The company's end-of-tax season volume update showed a deceleration in its volume growth from 12 percent in the first half of the tax season to 7 percent, still marginally better than analyst expectations. Intuit has also raised its FY15 revenue growth guidance to 8 percent from the earlier guidance range of 5-7%. "We believe price increases for the paid products almost offset the early season free promotion," the analysts stated. The company reported full-season Trubo Tax total unit growth of 9 per cent. "We believe IRS data indicates TurboTax gained share in digital this season. As per the IRS update on April 1 th overall e-file self-prepared receipts were up only 3.7% YoY. We expect the bulk of TurboTax's share gains to have come from smaller online DIY players," the analysts added. The EPS estimate for FY15 has been raised from $2.50 to $2.57 to reflect a better-than-expected tax season and higher revenue growth guidance. "The price target balances the risks from the current transition with the company's ability to grow in a wide range of economic backdrops," the report mentioned.
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