Intuit upgraded to "buy"

15.03.07 - Banc of America

NEW YORK, March 15 (newratings.com) - Analyst Dan Cummins of Banc of America Securities upgrades Intuit Inc (INTU) from "neutral" to "buy," while raising his estimates for the company. The target price is set to $36.

In a research note published this morning, the analyst mentions that the fundamentals of the current tax season are stable and there is increasing acceptance of the online tax payment system. Intuit is expected to capitalize on Digital Insight?s assets going forward, the analyst says. The company?s earnings are expected to be boosted by the diversification into the online banking sector going forward, Banc of America Securities adds. The EPS estimates for 2007 and 2008 have been raised from $1.37 to $1.38 and $1.55 to $1.62, respectively, to reflect the outlook for the company?s tax product and a decline in the interest costs.