"We see Intuit as a cycle-independent technology leader in the early stages of global expansion that will benefit from the shift to QuickBooks Online (QBO)," analysts said about the California-based provider of business and financial management solutions.
"However, we believe the company's targets for subscriber growth and earnings CAGR may prove somewhat ambitious, and expect some pressure on tax volumes based on the implementation of the ACA and new fraud-reduction measures by the IRS," they added.
Analysts lowered their estimate for FY16 EPS to $3.74 from $4 and introduced FY17 estimate of $4.60, below guidance for $5. While analysts see upside to FY15 EPS estimates, they believe investors will be more focused on QBO subscribers and feasibility of FY17 goals.
Shares of Intuit closed up 0.84% at $92.88 yesterday.
Separately, TheStreet Ratings team rates INTUIT INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTUIT INC (INTU) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."