INTU - Intuit stock down 9.0% on Q3 earnings: buy the dip?

2024-05-24 13:06:13 ET

A 9.0% decline in Intuit Inc (NASDAQ: INTU) following its quarterly earnings report last night is worth buying, as per a UBS analyst.

Intuit stock could climb to $670

Intuit stock is taking a hit this morning because the management’s guidance for the current quarter failed to impress the market.

Still, Jennifer Swanson Lowe raised her price objective on in a recent research note to $670 which suggests a near 12% upside from here.

The UBS analyst is bullish on the financial software company as she sees potential for continued growth in company’s consumer group revenue that popped some 9.0% in Q1.

Intuit Inc does also pay a dividend yield of 0.59% that makes up for another good reason to have it in your investment portfolio.

Intuit has raised its full-year guidance

Jennifer Swanson Lowe recommends buying Intuit stock because she expects price hikes in TurboTax to improve EPS and expand margins moving forward.

Another positive for the business software company is the raised earnings guidance for the full year.

now forecasts its per-share earnings on an adjusted basis to fall between $16.79 to $16.84 which translates to about a 17% annualised growth. Its previous guidance was for a 14% increase tops.

Note that UBS is not the only investment firm that’s bullish on Intuit stock. Susquehanna also sees upside in its shares to an even higher $757 or about 25% upside from here.

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