UPDATE: Intuit (INTU) PT Lowered to $650 but BofA Securities Expects ASP Growth Through Tax Season

BofA Securities analyst Brad Sills lowered the price target on Intuit (NASDAQ: INTU) to $650.00 (from $750.00) after the company reported better than expected Q2 results & FY21 outlook following its positive pre-announcement 2 weeks ago. Total rev of $2.673bn (+70% y/y, +54% y/y organic) exceeded the pre-announced $2.660-$2.665bn. Small business (QB & Mailchimp) rev of $1.581bn (+47% y/y; +24% y/y organic) exceeded the pre-announced $1.578bn at the midpoint w/ strength from QB coming from a higher ASP mix-shift and healthy customer growth.

The analyst reiterated a Buy rating, stating "We look for further CK upside in the Q3 tax quarter, from incremental TT filer conversion, providing meaningful upside in last year’s tax quarter. In line Mailchimp revenue ($240mn vs. our $235mn) suggests that synergies from the combined QB offering are likely to occur as the co. integrates the two offerings. No change to our long term view that Intuit is well positioned for solid high teens organic growth from enduring share gains and ASP growth in the leading QB and TT franchises with added scale."

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