Market Overview

Intuit's TurboTax Live Could Transform Tax Prep, Says Bullish Guggenheim

Intuit's TurboTax Live Could Transform Tax Prep, Says Bullish Guggenheim

Millions of Americans are putting the finishing touches on their taxes this week. A Guggenheim analyst said Thursday that within the next few years, many of them may be using TurboTax Live, which could dramatically boost shares of Intuit Inc. (NASDAQ: INTU).

The Analyst

Guggenheim’s Ken Wong maintained a Buy rating on Intuit and boosted the price target from $260 to $310.

The Thesis

Guggenheim sees TurboTax Live as “transformational technology” that will speed up a shift from using tax preparers to self-preparation with online assistance, Wong said in a Thursday note. 

The most optimistic scenario projects TurboTax being a $5-billion business by 2022 and bringing in $7 billion by 2025, the analyst said in Guggenheim’s new series highlighting “transformational ideas.”

“We view TurboTax Live as a disruptive technology and change catalyst that could lift the growth potential of the consumer business from the 9-11-percent target provided at analyst day into the mid-teens,” Wong said. “Our test drive of Live and interaction with TurboTax reps suggest demand is strong, with their expectations for a 50-percent capacity hike next year.”

In addition to boosting its 12-month target price by $50, Guggenheim is also trying to put a value on the long-term potential for changing the way people do their taxes by modeling for a “three-year franchise potential” that pegs Intuit at $380 to $400 a share, the analyst said. 

Price Action

Intuit shares were up 0.22 percent at $259.65 at the time of publication Thursday. 

Related Links:

The IRS Is Open And Taxpayers Are Filing: What It Means For Intuit

BofA, Guggenheim Positive On Intuit Ahead Of Tax Season

Latest Ratings for INTU

Jan 2021Credit SuisseMaintainsOutperform
Dec 2020JP MorganUpgradesUnderweightOverweight
Dec 2020Credit SuisseMaintainsOutperform

View More Analyst Ratings for INTU
View the Latest Analyst Ratings


Related Articles (INTU)

View Comments and Join the Discussion!

Posted-In: Guggenheim intuit IRS Ken WongAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

WWEEvercore ISI GroupUpgrades
INTB of A SecuritiesUpgrades40.0
BLDPBMO CapitalInitiates Coverage On39.0
SSYSStifelInitiates Coverage On40.0
CMGGoldman SachsInitiates Coverage On1,650.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at