CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our target price to $715 from $612, on a P/E of 42x our NTM estimate of $17.03, above its three-year average. We raise our FY 24 forecast to $16.43 from $16.32 and up our FY 25 EPS view to $18.86 from $18.66. INTU posted Q2 revenue of $3.39B, in line with consensus, while non-GAAP EPS of $2.63 beat by $0.32. Strength in Small Business and Self-employed (+18.3% Y/Y) was driven by momentum in its Online Ecosystem of products (+21.4% Y/Y), offset slightly by Desktop Ecosystem (+10.1% Y/Y). Quickbooks Desktop Enterprise continues to grow at a strong pace (mid-teens in Q2), but capability enhancements on its online platform over time should encourage more migrations as the company nears the end of its three-year transition plan. Consumer Group sales declined 5%, impacted by the delayed opening of the IRS this year, although INTU reiterates guidance for 7%-8% growth in 2024. Margins strengthened in Q2 as non-GAAP operating margin rose 140 bps Y/Y, while cash flow ($613M) more than doubled from Q2 FY 23.