Intuit Inc. (NASDAQ:INTU) is one of the best tech stocks to invest in on the dip. Intuit Inc. (NASDAQ:INTU) holds a Moderate Buy rating from 23 analysts, with an average 12‑month target of $471.36 (65.8% upside), ranging between $276.00 and $875.00.
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However on June 2, Goldman Sachs analyst Gabriela Borges downgraded Intuit Inc. (NASDAQ:INTU) from Neutral to Sell and slashed the price target from $519 to $276.
Borges’s main concern is TurboTax, Intuit’s flagship product that contributes about 25% of its total revenue and operating income. The analyst believes the product faces an existential threat from a new generation of AI-powered tax-filing tools. Borges pointed to Prime Meridian, Perplexity Tax, and Chime Tax and said they are now graduating beyond viral buzz into credible, scalable products with proper go-to-market strategies. As such, they are a real threat to TurboTax’s market dominance going forward.
The analyst estimated that the AI models can process a standard individual tax return for just $0.12. In comparison, users pay up to $162 to TurboTax. This cost gap is so wide that AI-native competitors can profitably undercut TurboTax without needing heavy investor subsidies, Borges noted. His base-case projection for TurboTax alone assumes that if just 20% of US tax filers shift to AI-only solutions, TurboTax revenue could end up roughly 18% below FY2025 levels by 2030.
The analyst also flagged that Mailchimp was supposed to achieve double-digit growth by the end of FY2026, but instead posted a slight year over year decline in the most recent quarter. Mailchimp is Intuit’s email marketing and automation platform that contributes about 7% of revenue. Borges expects the revenue deceleration to continue as Intuit adjusts its cost structure to a lower-growth reality.
Intuit Inc. (NASDAQ:INTU) is a financial software company. It provides consumer and business solutions through products such as TurboTax, QuickBooks, Credit Karma, and Mailchimp.
While we acknowledge the risk and potential of INTU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTU and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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