Oppenheimer analysts provided their views on Intuit Inc. (NASDAQ:INTU) following the company’s 2022 Investor Day, where it highlighted the refreshed "five Big Bets" introduced three years ago. These are: (1) Revolutionize speed to benefit (using AI to serve customers), (2) Connect people to experts (turbotaxlive/QuickBooksLive), (3) Unlock smart money decisions (Credit Karma), (4) Be the center of small business growth (Mailchimp/Money Portfolio/Workforce Solutions), and (5) Disrupt the small business mid-market (QBO Advanced).
The company outlined its Consumer (TurboTax)/Small Business/Credit Karma segment growth strategies pursuing penetration of its now $312 billion TAM (vs. $290 billion last year). Penetrating Assisted consumer tax preparation via rapidly growing turbotaxlive, the company highlighted its long-targeted, recent entry into the sizable/ fragmented business tax market.
Increased from 10-15% in August, the company stressed 15-20% long-term revenue growth for the Small Business segment. Innovation has Credit Karma positioned for incremental growth, albeit likely below its long-term 20-25% CAGR expectation in 2023 on perceived macroeconomic headwinds.
The analysts maintained their Outperform rating and a $516 price target.