Intuit, the provider of popular tax and accounting software, enjoyed a surge in its shares last Friday as several analysts increased their price targets following an impressive earnings report and an upward adjustment of their outlook. Intuit's stocks leaped over 8% recently, trading at $723, and contributing to an approximately 15% gain year-to-date.
The performance of TurboTax, a product of Intuit, was characterized by UBS as displaying "eye-popping consumer strength". After experiencing a few shaky years, this year's strong performance seems to have uplifted the market's sentiment. UBS, as a result, enhanced its price target from $720 to $750.
In the meantime, Oppenheimer analysts also adjusted their target from $642 to $742, attributing the adjustment to TurboTax’s resilience in a volatile macroeconomic landscape. Other analysts such as Jefferies and Citi likewise elevated their targets to $850 and $789 from $735 and $726, respectively.
Further potential benefits for Intuit may come from possible legislative changes. The House of Representatives has pushed forward President Trump's budget proposal, the "One Big Beautiful Bill". If enacted, the proposal will usher in significant alterations to the tax code, including the possible cancellation of the IRS's Direct File program. This free tax filing system directly competes with Intuit's TurboTax. Since its introduction in 2024 and subsequent expansion in 2025, it has catered to an estimated 30 million eligible users.