Why Analysts Are Bullish on Intuit Despite a Forecast That Missed Estimates | Global News Avenue

intuition(Yingtu) shares plunged on Friday after the company released its forecast for the quarter. missed estimatebut analysts are bullish on the stock, arguing that the company’s early marketing spending could drive later growth.

The TurboTax and Credit Karma operator expects second-quarter revenue of $3.81 billion to $3.85 billion, Earnings per share (EPS) 84 cents to 90 cents, both below the analyst consensus compiled by Visible Alpha.

Analysts at Jefferies said Intuit’s results could be affected by its “decision to start marketing TurboTax early” and add about 200 salespeople to drive growth. Analysts maintained a “buy” rating on the stock and raised the price target to $800 from $790, which would represent an upside of about 23% from Friday’s intraday price.

Deutsche Bank maintained a Buy rating and $750 price target, noting that the company “manages full-year expenses, which may lead to changes in quarterly margin performance as the timing of expenses/investments may change.” Intuit reiterated its full-year EPS forecast of $12.34 to $12.54.

Citi analysts maintained a “buy” rating and $760 price target, adding that Intuit said it had discussed the reports with the incoming Trump administration. Plans to launch a competing free tax filing app“Fear may abate.”

Intuit shares fell 4% intraday Friday to $649.43. They are up nearly 4% since the beginning of the year.