© Reuters. KeyBanc confident in Intuit’s defensive positioning, says Microsoft the survey leader in UCaaS
By Sam Boughedda
KeyBanc Capital Markets raised its price targets on Intuit (NASDAQ:) to $475 and Microsoft (NASDAQ:) to $316 per share in a note to clients on Wednesday, maintaining Overweight ratings on both.
Analysts at the firms explained that they surveyed over 100 SMBs in January and February, “expressing an optimistic 3% 2023 tech spend growth outlook.” However, they warned that given heightened macro uncertainty, they would interpret the results with an air of caution.
On Intuit, the firm stated that they have rising confidence in cross-sell and defensive positioning.
“For INTU, the next ~20% accounting market share is still tied up in spreadsheets, and the ~50% consideration for adjacent products like payroll is well above current levels of ~20%, with core QuickBooks accounting/invoicing components receiving the #1/#2 rankings as most insulated from a downturn,” the analysts wrote.
On Microsoft, the analysts explained that survey results show SMB public cloud usage is about evenly split on Azure//.
In addition, Microsoft was the survey leader in UCaaS, expense management, and file management and number two for video conferencing behind Zoom Video Communications Inc (NASDAQ:).
