Aug. 28 at 2:13 AM
BofA Securities downgraded Intuit to Neutral from Buy and cut its price target to
$360 from
$400, citing a transition year ahead as AI reshapes demand for tax products and weak customer growth raises concerns about expansion. BofA lowered its fiscal 2027 revenue estimate to
$23.4 billion from
$23.9 billion and adjusted EPS to
$23.02 from
$27.23.
The biggest concern is TurboTax, where Intuit expects only 2.2% growth versus the market’s 6.8% forecast. BofA said the slowdown could indicate customers are shifting toward cheaper AI-powered alternatives, while weaker new-customer acquisition may limit product upgrades in 2027.
Business operations are also moderating, with online customer growth around 3%. Intuit reduced its long-term Global Business Solutions growth target to 10%-15% from 15%-20%. Plans to attract customers through lower-priced and free offerings and broader distribution could pressure profitability before generating meaningful benefits.
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