NEW YORK (TheStreet) -- Intuit's (INTU - Get Report) stock price target was increased to $130 from $125 at Deutsche Bank this morning following the Mountain View, CA-based maker of TurboTax software's better-than-expected fourth quarter earnings.
The firm said Intuit's fourth quarter results were solid and that its lower 2017 first quarter earnings and revenue guidance "appears conservative" but is prudent at this point in the quarter.
After yesterday's market close, Intuit issued a downbeat outlook for the 2017 first quarter. It now expects earnings in the range of 1 cent to 3 cents per share and revenue between $740 million and $760 million.
Deutsche Bank adjusted its 2017 first quarter outlook to 3 cents per share and $749 million, down from its previous guidance of 11 cents per share on revenue of $760 million.
For the most recent period, Intuit reported adjusted earnings of 8 cents per share, above analysts projected loss of 2 cents a share. Revenue came in at $754 million, topping Wall Street's estimates of $733 million.
Intuit reached its QuickBooks Online subscriber milestone of 1.5 million users during 2016, making its 2017 target of 2 million to 2.2 million subscribers appear less daunting, Deutsche Bank noted.
There's continued upside to the 2017 QuickBooks Online targets as Intuit launches new products in France and Brazil, and the company improves its presence in international markets, the firm said.
Shares of Intuit were down in mid-afternoon trading on Wednesday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate INTUIT INC as a Buy with a ratings score of B. 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 revenue growth, notable return on equity, expanding profit margins, solid stock price performance and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.You can view the full analysis from the report here: INTU