Intuit (INTU) has demonstrated “durable earnings growth” by raising its fiscal year targets for each revenue segment and increasing its EPS target by 3%, Morgan Stanley analysts said in a note to clients Friday.
“Intuit again flexes the power of its broad platform and strong expense control to deliver consistent EPS growth,” Morgan Stanley said. “The existing franchises continue to yield solid growth for Intuit, while the yields on more recent investments start to come into focus.”
Morgan Stanley also said that Intuit’s small business segment is “proving more durable than expected” with sustained 18.1% growth in Q3 compared with 18.3% annual growth in Q2.
The firm maintained its overweight rating on Intuit’s stock and raised its price target to $750 a share from $740.
Shares of Intuit were down 6% in recent premarket activity.