UBS Raises Price Target on Intuit (INTU) to $135 Following 1Q Beat

November 18, 2016 9:25 AM EST
Get Alerts INTU Hot Sheet
Price: $117.31 +0.60%

Rating Summary:
    9 Buy, 10 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 21 | Down: 18 | New: 19
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UBS reiterated a Buy rating on Intuit (NASDAQ: INTU), and raised the price target to $135.00 (from $134.00), following the company's 1Q earnings report. INTU reported revenues of $778m, ahead of UBS's estimate of 760m. EPS was reported at 0.06, beating estimates of 0.03. 2017 revenue expectations remain at 5,100m, or at the high end of guide range of $5,000-5,100M. EPS estimates of $4.50 is slightly above guide range of $4.30-4.40.

Analyst Brent Thill commented, "FY17 kicked off with a nice beat in the seasonally small FQ1, which sets up INTU to potentially beat FY goals again. Strength was driven by the Small Business segment as: 1) QBO subs beat guide & above-guide consensus; % YoY growth stabilized at 41% after decelerating for 3 qtrs, and FQ2 guide implies a flat 41% trend, with potential to accelerate; 2) Online Ecosystem ARR accelerated for the 3rd qtr to 26%, and is likely to continue accelerating in Q2-Q4 (FY guide 25-30%); 3) Int'l geos are gaining traction (UK subs grew 87%); 4) QB Desktop remained resilient (units actually up 23% YoY driven by OS upgrades); and 5) total QB small biz customer base actually grew 5%. We believe INTU's renewed focus on products & technology in the last 2-3 yrs is starting to pay off, as we've already seen in share gains in TurboTax, and now with accelerating trends in Small Business. Our positive thesis remains unchanged: a consistent performer (7+ years of pos. stock returns); quality mgmt. team; cash return via dividends & share repurchase; U.S. centric (no FX risk); and nearing completion of transition to a ratable rev model."

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 $113.80 yesterday.



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