Stifel downgraded Intuit to Hold from Buy and slashed its price target to $275 from $375, citing expectations that the company will lower its long-term growth outlook for key businesses as it shifts toward more value-based pricing strategies. The brokerage expects Intuit management to reduce growth targets for both TurboTax and its Global Business Solutions segment when it reports fourth-quarter results and hosts its analyst day in September. Stifel cut its fiscal 2027 revenue forecast for Intuit to $23.44 billion from $23.64 billion and lowered its fiscal 2027 earnings-per-share estimate to $26.94 from $27.34, while introducing a fiscal 2028 EPS forecast of $29.38. The firm expects TurboTax's long-term growth target to be reduced to 4%-6% from the current 6%-10% range, and the Global Business Solutions growth target to be lowered to 10%-15% from 15%-20%, citing concerns about slowing momentum in QuickBooks, payroll services, and Mailchimp. Despite the downgrade, Stifel said it does not expect another sharp decline in the stock given Intuit's active share repurchase program and relatively low valuation multiples, but expects the shares to lag other large-cap software peers until revenue growth expectations improve.
Intuit IncStifel downgraded Intuit to Hold and cut price target from $375 to $275, citing lowered growth outlook for TurboTax and Global Business Solutions.
Stifel Financial Corporation