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00:02Goldman Sachs downgraded Intuit on Tuesday, cutting its rating from neutral to sell and
00:07slashing its 12-month price target to $276 from $519, according to CNBC.
00:15Analyst Cash Rangan cited rising competition from AI-driven tax platforms as a key risk to
00:21the company's results over the next several years. TurboTax accounts for about 25% of Intuit's
00:26revenue and operating income, and Goldman warned that rivals, including Prime Meridian,
00:31Perplexity Tax, and Chime Tax, are rapidly improving. Goldman estimated that an AI model
00:36can process a standard tax return for about 12 cents, compared to TurboTax's average of $162 per
00:43return. The downgrade also flagged weakness in MailChimp, which represents about 7% of revenue
00:49and posted a slight year-over-year decline last quarter. Shares were down by 0.07% at $321
00:56and 92 cents in Wednesday's pre-market trading, according to Benzinga Pro.
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