Morgan Stanley analyst Keith Weiss has maintained their neutral stance on INTU stock, giving a Hold rating yesterday.
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Keith Weiss has given his Hold rating due to a combination of factors influencing Intuit’s current outlook. One of the primary concerns is the uncertainty surrounding TurboTax’s performance, as the investor debate on the company’s fiscal year 2025 Consumer revenue guidance remains unresolved. With the tax season still in its early stages, there is little clarity on whether Intuit’s growth strategies, particularly for TurboTax, will meet expectations. Additionally, Intuit faces potential risks from new LLM-driven help options potentially cannibalizing TurboTax Live, and uncertainty around the success of the Full Assist offering.
Another contributing factor is the competitive pressure from H&R Block, which might hinder TurboTax’s unit growth despite Intuit’s pricing strategies. H&R Block’s offerings, such as the AI Tax Assist tool and transparent pricing, are positioned to challenge TurboTax. Moreover, the potential simplification of the U.S. tax code under the new government could impose pricing pressures on Intuit’s higher-priced offerings, adding to the uncertainty. Given these challenges, coupled with already high expectations for Small Business growth, Intuit’s shares lack a strong near-term catalyst for upward movement, supporting the Hold rating.
Weiss covers the Technology sector, focusing on stocks such as Salesforce, Adobe, and Intuit. According to TipRanks, Weiss has an average return of 16.2% and a 66.38% success rate on recommended stocks.
In another report released yesterday, Redburn Atlantic also initiated coverage with a Hold rating on the stock with a $560.00 price target.