Why Analysts Are Bullish on Intuit Despite a Forecast That Missed Estimates [Video]

Intuit (INTU) shares tumbled Friday after the company issued a current-quarter forecast that missed estimates, but analysts were bullish on the stock, suggesting the company’s early spending on marketing could drive later growth. 

The TurboTax and Credit Karma operator called for second-quarter revenue of $3.81 billion to $3.85 billion and earnings per share (EPS) of 84 cents to 90 cents, both of which were below the analyst consensus compiled by Visible Alpha. 

Analysts at Jefferies said Intuit’s results may have been weighed down by its “decision to start marketing TurboTax earlier” and add about 200 salespeople to its roster in an effort to drive growth. The analysts maintained a “buy” rating for the stock and raised their price target to $800 from $790, implying about 23% upside from Friday’s intraday price.

Deutsche Bank, which maintained a “buy” rating and $750 price target, noted the company “manages spend on a full-year basis, which …