UBS Maintains a 'Buy' on Intuit (INTU); Encouraging FY12 Guidance & New Dividend

UBS maintains a 'Buy' on Intuit (NASDAQ: INTU) price target lowered from $57 to $53.

UBS analyst says, "INTU gave better than expected FY12 guidance for 9-11% revenue growth (vs. 11% in FY11) and 50-100bp of OPM improvement. Embedded expectations in the stock prior to the call implied 6-9% y/y growth, so overall an encouraging tone despite the fears of a macro slowdown. The icing on the cake was a new $0.15/share dividend (1.5% yield) which should help attract a new investor class. Bottom line we like INTU for its consistency, recurring revenue stream, limited exposure to Europe, $2.6bn buyback, and attractive valuation at 13.6x CY12 EPS."

"We have set our FY12 estimates at low end of guidance range for revs and PF EPS given current macro concerns. Rev to/from $4,185M/4,234M (+9%/+10%); PF EPS unchanged at $2.85 but vs. guidance of $2.85-2.94. We assume flat operating margin."

For more ratings news on Intuit click here and for the rating history of Intuit click here.

Shares of Intuit closed at $40.30 yesterday.

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