Intuit Shares Slip After Piper Sandler Initiates Coverage With Street-Low Price Target
Piper Sandler initiated coverage of Intuit (INTU) with an Underweight rating and a $250 price target, the lowest among analysts. Shares slipped 0.9% in premarket trading.
Key Numbers
Intuit (NASDAQ:INTU) shares edged 0.9% lower in premarket trading after Piper Sandler began coverage of the financial software company with an Underweight rating and a $250 price target, the most bearish target currently assigned by Wall Street analysts.
Rating Change
Piper Sandler had no prior rating on Intuit; this is an initiation of coverage. The new rating is Underweight with a $250 price target.
Analyst Rationale
Piper Sandler analysts believe the stock is overvalued, citing expectations of slower growth amid increasing competition in the financial software space. They also pointed to headwinds from consumer spending and economic pressures.
Context
The $250 price target is the lowest among all analysts covering Intuit. The average analyst price target for Intuit is around $350. Intuit shares have declined about 15% year-to-date.
What to Make of It
The initiation of coverage with a negative rating by Piper Sandler adds pressure on the stock, but it does not necessarily reflect the consensus view. Investors are encouraged to compare this opinion with other analysts before making decisions.
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