Citi ‘a bit surprised’ by magnitude of Intuit price decline after restructuring

Citi is “a bit surprised by the magnitude of the price decline today” in Intuit shares after the company announced a restructuring impacting 1,800 employees, or 10% of its workforce, along with plans to re-hire 1,800 new positions across R&D and S&M in an effort to re-allocate resources toward growth initiatives and AI. However, the firm believes this likely reflects some level of concern with the hiring risk and a shift to potentially higher-cost employees, along with the magnitude and size of the reduction in force being larger than expected and continued skepticism of the competitive environment. The firm maintains a Buy rating and $750 price target on Intuit shares, which are down $25.70, or 4%, to $623.82 near noon.