Goldman Says Wait Before Pulling Trigger on Intuit (INTU)

February 22, 2013 2:24 PM EST Send to a Friend
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Price: $83.01 +1.28%

Rating Summary:
    8 Buy, 8 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 12 | Down: 25 | New: 20
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Goldman Sachs today maintained a Neutral rating on Intuit (NASDAQ: INTU) with a modified price target of $67.00 (from $64.00). Yesterday Intuit reported Q2 EPS of $0.33, $0.03 better than the analyst estimate of $0.30. Revenue for the quarter came in at $968 million versus the consensus estimate of $963.19 million.

Recently, market participants expressed mixed views regarding growth rates in consumer tax. A delay in the tax season is also adding to uncertainly.

"Management addressed concerns with updated statistics (i.e., YTD paid unit declines of 6% for Intuit compare to IRS data that shows returns down 22%). Intuit has also seen total units from January 30–February 16 grow 29% yoy," said analyst Goldman Greg Dunham.

"Despite these metrics, the outlook embeds that 84% of consumer tax revenues will be in the back-half of the year (vs. an average of 79% the past three years and 82% in the backend loaded 2011). We believe the consumer tax guidance may be aggressive given the unit growth this past year (7% in FY12) and we are awaiting more tangible signs of growth sustainability before recommending shares,” concluded the analyst.

For an analyst ratings summary and ratings history on Intuit (NASDAQ: INTU) click here. For more ratings news on Intuit click here.

Shares of Intuit closed at $61.30 yesterday.


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