Oppenheimer has revised its price target for Intuit (INTU, Financial), reducing it from $722 to $642 while maintaining an Outperform rating. The firm continues to be attracted to Intuit's strong and stable recurring revenue stream, particularly highlighting the consistent growth in the company's Global Business Solutions division, even during tough economic periods. The Consumer segment also demonstrates solid performance in terms of revenue growth.
However, the firm expresses growing concerns about TurboTax’s expected volume growth for fiscal year 2025. Despite TurboTax gaining market share in the DIY tax preparation segment through early-season promotions, there has been an overall shift in preference towards professional tax preparation services in the industry this year. If this trend persists throughout the tax season, it could limit the volume and revenue growth for TurboTax in FY25.
In response to these developments, Oppenheimer has cautiously adjusted its forecast for Intuit's FY25 Consumer revenue growth, lowering it from an initial estimate of 7% to 5% on a year-over-year basis.
