Goldman Sachs analyst Gabriela Borges downgraded Intuit to Sell from Neutral with a price target of $276, down from $519. The firm believes consensus estimates numbers are likely too high for the next three years, and that Intuit may have to revise its long-term growth targets lower. Downward estimate revisions will likely weigh on the stock over the next several quarters before the market adjusts to an updated growth algorithm of 5%-10% sales growth for Intuit, the analyst tells investors in a research note. Goldman believes Intuit is entering a period of heightened competition in tax.
