Intuit Stock Downgraded Because of Recent Stock-Price Increase
Sep 11th 2010 12:02PM
Updated Sep 11th 2010 12:05PM
UBS downgraded Intuit to a "neutral" rating from "buy" Thursday and kept its $44 price target. Shares closed at $43.37 today.
Intuit, which said earlier this week that it would ship its QuickBooks 2011 product Sept. 27, is likely to keep improving its financial results amid a challenging economic environment as it boosts prices and develops new products, UBS said in its note to clients. Revenue for the year ending July 2011 will increase 10% to $3.8 billion, UBS estimated.
Still, the stock doesn't have "significant near-term upside...unless estimates move materially above consensus levels and multiples expand," UBS wrote.
UBS shares appreciated 43% year to date as of yesterday, compared to a 2% drop for the NASDAQ.