For some people, this is the best time of year. The smell of freshly sharpened pencils. The rattle of shoeboxes full of receipts. Tax season is here! Time to get ready! And maybe, time to buy Intuit (NASDAQ:INTU).
Citigroup’s Brent Thill this morning raised his rating on Intuit to a Buy from a Hold ahead of the coming tax season. Thill offers a four-part thesis for his upgrade:
- Attractive valuation with 18% upside to $36 price target; stock has been weak on concern about recent announcements of acquisitions.
- Expecting upcoming tax season strength for the company.
- Acquisition of Digital Insight, an online banking services company, and Electronic Clearing House, which dos payroll and payments, could improve revenue guidance from 8%-10% to 15%-plus growth in fiscal ‘07.
- Seasonal trade as stock has returned about 20% from Feb. to July over past 2 years.
Thill has a $36 price target on the stock.
This morning, the stock is up 62 cents at $31.20.
INTU 1-yr chart: