The Intuit Analyst: Rishi Jaluria of RBC Capital Markets began covering Intuit with an Outperform rating and a $760 price target.
The Intuit Thesis: Recurring subscriptions account for almost 80% of Intuit’s income. It has accomplished “greater platform expansion,” according to Jaluria’s initiation notice.
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Platform sales now account for 77% of Intuit’s overall revenue, up from 53% five years ago. He continued, saying that the mix change toward cloud and subscription services will result in “better unique economics.”
Since “tax codes and regulations become increasingly complex,” Intuit could benefit from its dominant market position in tax and accounting software, according to the analyst.
According to Jaluria, the businesses of SMB accounting and tax preparation are “very services-heavy.” Customers of Intuit may automate processes and save money with the help of GenAI.
He continued by saying that in the company’s fiscal 2026, the non-GAAP and GAAP operating margins may be as high as 40% and 30%, respectively.
INTU Price Action: At the time of publishing on Wednesday, shares of Intuit had increased by 0.66% to $660.52.
