Intuit Shares In Focus As Analyst Puts New Subscription Model, GenAI, Tax Laws Into Perspective
Portfolio Pulse from Priya Nigam
Intuit Inc (NASDAQ:INTU) has successfully transitioned to a subscription-based model and is showing additional upside from generative AI. RBC Capital Markets' Rishi Jaluria initiated coverage with an Outperform rating and a price target of $760. Around 80% of Intuit’s revenue is from recurring subscriptions, and the company has expanded its platform significantly. Intuit's market leadership in tax and accounting software is expected to benefit from increasingly complex tax codes and regulations. The company's operating margins are projected to reach around 40% (non-GAAP) and 30% (GAAP) by fiscal 2026.
July 03, 2024 | 3:58 pm
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Intuit has transitioned to a subscription-based model and is leveraging generative AI, earning an Outperform rating from RBC Capital Markets with a price target of $760. The company generates 80% of its revenue from recurring subscriptions and has expanded its platform significantly. Intuit's market leadership in tax and accounting software is expected to benefit from increasingly complex tax codes and regulations. Operating margins are projected to reach around 40% (non-GAAP) and 30% (GAAP) by fiscal 2026.
The Outperform rating and high price target from RBC Capital Markets are positive indicators for Intuit's stock. The company's successful transition to a subscription model, significant platform expansion, and market leadership in tax and accounting software are expected to drive revenue growth and improve operating margins. The use of generative AI to automate services and generate cost savings further strengthens its position.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100