Intuit Inc (NASDAQ:INTU) shares are plummeting on Tuesday after Oppenheimer cut its price target on the stock. Here’s what you should know.
Analyst Lowers Target As Software Stocks Slip
Oppenheimer analyst Scott Schneeberger kept his Outperform rating on Intuit but trimmed the price target from $868 to $696 — a reduction of nearly 20%.
The analyst adjustment comes amid heavy selling pressure in software names as worries mount surrounding earnings season. Intuit is due to report earnings for its fiscal second quarter on Feb. 26.
Technical Setup Shows Heavy Selling Pressure
Intuit shares are trading well below key trend lines, sitting 24.6% under their 20‑day SMA and 36.6% under the 200‑day SMA — a sign that selling pressure has been firmly in control. The stock is down 28.22% over the past year and is hovering much closer to its 52‑week lows than its highs, underscoring how weak the recent price action has been.
The RSI has dropped to 22.45, placing the stock deep in oversold territory and hinting that a short‑term bounce could emerge if buyers step in. At the same time, the MACD remains below its signal line, showing that bearish momentum hasn't let up.
Taken together, the oversold RSI and bearish MACD paint a picture of mixed momentum: the stock looks stretched to the downside, but the broader downtrend is still firmly intact.
- Key Resistance: $486.50
- Key Support: $400.00
Analyst Outlook
Just a month before Oppenheimer’s rating earlier, Wells Fargo downgraded its rating from Overweight to Equal-Weight on Jan. 8, reducing the target price from $840 to $700.
Additionally, the company attracted new coverage from TD Cowen and Truist Securities in January. TD Cowen initiated coverage with a Buy rating and a $802 target price, while Truist Securities also suggested a Buy rating with a slightly lower target price of $739. These actions followed Wells Fargo’s move in November to maintain an Overweight rating but reduced target price from $880 to $840.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Intuit, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: 0.47 — Stock is performing poorly compared to peers.
- Quality Rank: 92.66 — Balance sheet remains healthy.
- Momentum Rank: 6.7 — Stock is underperforming the broader market.
The Verdict: Intuit’s Benzinga Edge signal reveals a classic “High-Flyer”‘ setup. While the Quality score indicates a strong balance sheet, the low Value and Momentum scores warn that the stock is underperforming and trading at a steep premium relative to peers.
INTU Price Action: Intuit shares were down 11.89% at $429.01 at the time of publication on Tuesday. The stock is trading at a new 52-week low, according to Benzinga Pro.
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