Short Description:
Two major analyst firms lowered their price targets for Intuit (INTU) stock. Explore the rationale behind the moves and what it means for the financial software giant’s future.
Read Time:
2 minutes, 15 seconds
Main Article:
In a notable move that caught investor attention, TD Cowen and BMO Capital both revised their price targets for financial software leader Intuit Inc. (NASDAQ: INTU) on February 9. TD Cowen analyst Jared Levine maintained a “Buy” rating but reduced the firm’s price objective to $658 from $802. Similarly, BMO Capital kept its “Outperform” rating but cut its target to $624 from $810. This reflects a broader trend of analysts lowering price targets on high-performing stocks amid macroeconomic recalibrations. Despite the adjustments, the maintained positive ratings signal underlying confidence in the company’s resilient business model.
The TD Cowen price target reduction is attributed to recent stock underperformance and investor caution regarding long-term artificial intelligence (AI) impacts. However, the firm anticipates an “easy beat” for the company against lowered expectations, suggesting the current valuation may present an opportunity. This analyst outlook highlights the complex dynamic between near-term execution pressures and long-term AI stock potential within the financial technology sector. The focus remains on how Intuit will leverage AI to enhance its core tax and accounting platforms.
Concurrently, the BMO Capital price target adjustment followed its annual survey of U.S. tax filers. The survey revealed favorable trends for Intuit’s flagship TurboTax, particularly for its Full Service offering and expanded local strategy. BMO highlighted “constructive upsell as well as cross-sell opportunities,” which are expected to bolster the company against challenging prior-year comparisons. This data reinforces Intuit’s dominant market position and its ability to drive growth within its Consumer segment, even as analysts recalibrate short-term valuation models.
Short Summary:
Despite TD Cowen and BMO Capital lowering their Intuit (INTU) stock price targets, both firms maintain positive ratings. The moves reflect investor caution on AI’s impact and valuation, but are offset by strong fundamentals in Intuit’s TurboTax business and expectations for the company to exceed a low bar. The core investment thesis around its market-leading financial software remains intact.
