Intuit (INTU) Likely to Offer a Positive Tax Update Next Week - Jefferies

Jefferies analyst Brent Thill reiterated a Buy rating and $700.00 price target on Intuit (NASDAQ: INTU) noting that he expects a positive update from INTU next week, highlighting particular strength in the DIY Tax category share gains and higher avg. prices thanks to TurboTax Live and Full Service SKUs. With other segments running ahead of plan as of FQ2, we see FY22 biased to the upside.

The analyst stated "TurboTax (Consumer segment) depends on 4 growth drivers: total IRS returns, share of the DIY category vs. total IRS, share of TurboTax, and pricing (revenue per return). We are most positive on DIY category share and pricing." "IRS data thru 4/8 shows 103.3M returns received, which is in line with comparable periods in 2018 & '19 (103.8M & 103.5M). IRS data is released with a 1-week lag each Friday. 2020 & 2021 had unusual tax deadlines due to Covid (7-15-20 & 5-17-21). Looking at data 2 weeks before deadline, returns were much higher in '20 (142M thru 7/3) & '21 (127M thru 5/7), but are difficult to compare due to stimulus only returns and the later dates. All eligible filers (ex-extensions) should still file by 4/18 this yr, and there were still 2 weekends left after the 4/8 IRS update. People tend to file later each year."

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 $485.07 yesterday.

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