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Research Alert: CFRA Downgrades Shares Of Intuit Inc. To A Hold From Buy

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our target price to $347 from $462 on a P/E of 12.8x our FY 27 (Jul.) EPS view of $27.09, below its three-year average. We raise our FY 26 EPS estimate to $23.84 from $23.18 and our FY 27 EPS view to $27.09 from $26.40. INTU reported Q3 FY 26 total revenue growth of 10% to $8.6B, with Global Business Solutions (GBS) revenue rising 15% to $3.3B and Consumer revenue up 8% to $5.3B, pressured by underperformance in its TurboTax segment, which decelerated to 7% from 11% in Q3 FY 25. The company faced headwinds in the DIY TurboTax segment, losing share to lower-priced competitors among price-sensitive customers. That said, mid-market momentum in its GBS segment was strong, with QBO Advanced and Intuit Enterprise Suite growing 38%, reflecting successful monetization of higher-end markets, though we now see demand risks in this category from a more uncertain macro. INTU also announced a 17% workforce reduction to streamline its reporting operations, with cost savings supporting margin expansion.

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