Intuit (INTU) PT Lowered to $757 at Susquehanna
Susquehanna lowered its price target on Intuit (NASDAQ: INTU) to $757.00 (from $775.00) while maintaining a Positive rating.
The analyst commented: "F3Q landed exceptional results in the "Small Business" segment, which houses the QuickBooks franchises (35% of revenue, up 18%), and the Consumer segment, which houses TurboTax (54% of revenue, up 9%) and Credit Karma (~7% of revenue, up 8%). These collectively landed FQ3 revenue roughly $100 mln above consensus,
and they raised the FY revenue by more than the beat. That said, FQ4 (June) unit commentary on tax returns suggested modest share loss, and the imputed FQ4 margin was just lower. We are raising '24 estimates, though trimming '25 and '26, albeit modestly in both directions. Our price target goes to $757 based on ~34x P/E. Our callback notes - the substance of which is contained in this note - are available upon request. Midterm, we are constructive on INTU due in part to two structural opportunities: the natural benefits of
GenerativeAI unique to their model, and their further expansion into the B2B payments adjacency. Near term, the margin upside from the first three quarters was greater than the full-year guide, implying some modest increase in the FQ4 expense structure."