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Pro Analysis

Buy Intuit on rising small business software sales, tax reform, Credit Suisse says


TAX SEASON
Michael Nagle | Bloomberg | Getty Images

Investors should buy Intuit shares because strength in its small business segment will drive financial results above expectations this year, according to Credit Suisse, which raised its rating on the company to outperform from neutral.

We are "upgrading shares of INTU … given our expectations for a normal close to the 2016 tax season, in which we expect the company to at least maintain its share of the tax prep market, and continued strong growth in the company's small business segment," analyst Michael Nemeroff wrote in a note to clients Friday. "Additionally, given the concentration of revenue in the U.S., the valuation on INTU shares will look increasingly attractive if tax reform in the U.S. is passed before the end of 2017."