UBS Cuts Price Target on Intuit (INTU) Following 4Q15 Results

UBS maintained a Buy rating on Intuit (NASDAQ: INTU), and cut the price target to $117.00 (from $120.00), following the company's 4Q15 earnings results. Unadjusted revenue of $754M beat Street's $738.98M. EPS -$0.06 beat Street estimates of -$0.12.

Analyst Brent Thill commented, "FQ4 is usually a time of strategic introspection for INTU, when it is often accompanied by shedding of ill-fitting assets and organizational restructuring. This year had a few extra moving pieces as INTU is now 1 year into its aggressive transition to Cloud/subs. On the positive side: (1) QuickBooks Online (QBO) subs accelerated for the 9th qtr, and the goal of 2M subs by FY17 is intact; (2) Int'l QBO subs grew triple digits for the 6th qtr and are approaching 20% of the total base; (3) QBO attach rate is healthy for online payroll at 23% and improving for online payments at 11%. Items requiring some explanation included: (1) Pushing out the $5.8Bn rev goal by ~1 yr due to divestitures, faster than expected adoption of QBO by new small biz, and slower than expected migration from QB desktop by "larger" small biz; (2) FY17 $5.00 EPS goal maintained, though mgmt. clearly hedged in case it wants to invest to accelerate growth. As seen in ADBE's transition, it can take a few tries to get the playbook right. We believe INTU is still on track L-T, and the tighter playbook should improve the success rate."

For an analyst ratings summary and ratings history on Intuit click here. For more ratings news on Intuit click here.

Shares of Intuit closed at $102.93 yesterday.

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