NEW YORK—A Citi Investment Research analyst cut his rating on TurboTax software maker Intuit Inc. Wednesday, saying its fiscal third-quarter results show the business is maturing.
Analyst Brent Thill said profit and revenue growth are slowing down for the financial software company, and profit margins have not improved in the last few years. He added that with tax season over, the stock often slides in the summer months.
Thill downgraded Intuit to "Hold" from "Buy" and lowered his price target to $32 from $35 per share. Thill said strong revenue from the TurboTax program and a larger-than-expected stock buyback helped Intuit's results, but growth in QuickBooks revenue was weak, and the internet banking and bill payment business lost users.
The company reported its fiscal third-quarter results after the closing bell on Tuesday. Earnings rose 21 percent.
Oppenheimer & Co. analyst Scott Schneeberger kept an "Outperform" rating on the Mountain View, Calif., company's stock, noting that its profit and revenue exceeded his expectations.
