Goldman Sachs Reiterates Buy Rating on Intuit (INTU)

Goldman Sachs analyst Kash Rangan reiterated a Buy rating and $750.00 price target on Intuit (NASDAQ: INTU)

The analyst comments "We reiterate our Buy rating and $750 PT ahead of Intuit’s F3Q25 results (5/22). Following the guidance reset last year, we view Intuit’s tax-heavy quarter (3Q) as a validation opportunity for its strategic initiatives (Assisted/Business Tax, Mid-Market, and AI prioritization)—with execution proofpoints that can reinforce investor confidence in long-term growth durability. We expect Revenue/Consumer to grow +13%/+10% (vs. Consensus +12%/+9%), supported by IRS data showing assisted’s accelerating growth (+1.7% vs. +0.6% in 2024), a category where Intuit is seeing product-market-fit and driving adoption as a price-disruptor. We expect solid execution with targeted campaigns showing healthy pipeline conversion, better-integrated product portfolio, and AI-led investments enhancing platform engagement—all of which should prove conducive to Intuit’s market positioning in tax. While industry DIY growth was more muted (+0.8% vs. +2.1% in 2024), we view it as a limited risk and gain further conviction from HRB ceding DIY market share to TurboTax this tax season following Intuit's refined promotion strategies. Beyond tax, broader software citing stable SMB demand supports a constructive setup for GBS (~60% of Revenue). While Intuit +8% YTD (vs. Nasdaq +2%)—likely reflecting gravitation towards more defensive US-centric assets amid macro uncertainty—we continue to see a positive risk/reward at 9x EV/CY26 Sales, a discount to Rule-of-50 peers at 11x. We believe Intuit is well-poised for multi-year durable mid-teens+ topline growth and 35%+ FCFM as its growth algorithm shifts from low-ARPC/high-volume toward higher-value/higher ARPC, thereby unlocking larger TAMs and creating a longer runway for growth and margin expansion."

For an analyst ratings summary and ratings history on Intuit click here. For more ratings news on Intuit click here.

Shares of Intuit closed at $670.28 yesterday.

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