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Monday, Intuit shares (NASDAQ:INTU), currently trading near its 52-week low at $565.47, maintained a Buy rating from Citi, with a reaffirmed price target of $760.00. According to InvestingPro analysis, the software giant, with a market capitalization of $158.52 billion, appears slightly undervalued based on its proprietary Fair Value model. Citi’s analysis followed the Internal Revenue Service’s (IRS) release of the third week of 2025 tax filing volumes as of February 14, 2025. The data showed a -4.9% year-over-year decrease in total filings compared to the twelfth day of the 2024 tax season, an improvement from the -7.7% reported the previous week. Similarly, e-filings were down -4.9% year-over-year, showing a smaller decline than the -7.4% from the week before.
When aligning the calendar dates to compare February 14, 2024, with the same date in 2025, both total filings and e-filings have seen a +2.9% year-over-year increase. This suggests a strong commencement to the tax filing season. Citi’s analyst indicated that despite the intraday drop in Intuit’s stock, which was attributed to concerns over a -35% year-over-year drop in tax refunds, these figures are expected to normalize in the following week.
The report from Citi also previewed Intuit’s second fiscal quarter earnings, due on February 25, anticipating a modestly positive outcome for the Consumer segment. This forecast is based on the timing of revenue recognition and the potential push out of earnings due to the tax season schedule. The company has demonstrated strong financial performance with impressive gross profit margins of 79.61% and revenue growth of 12.48% over the last twelve months. InvestingPro subscribers have access to over 15 additional key insights about Intuit’s financial health and market position. The focus remains on the do-it-yourself (DIY) tax preparation market share, which appears to be stable year-over-year according to Citi’s data.
Intuit, known for its tax preparation software TurboTax, is closely watched during tax season as its performance is often correlated with IRS filing trends. The company’s stock movement is influenced by such data releases, and Citi’s reiteration of its Buy rating and price target suggests confidence in Intuit’s market position and financial outlook. For a deeper understanding of Intuit’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which provides detailed analysis of the company’s financial health, market position, and growth potential.
In other recent news, Intuit has reported a series of significant developments. The company recently received an Outperform rating from Mizuho (NYSE:MFG), which raised its price target for Intuit to $750, citing strong first-quarter results and anticipated revenue shifts that could bolster third-quarter performance. Despite a softer second-quarter forecast, Mizuho views the revenue adjustment as strategic rather than indicative of a loss. Meanwhile, KeyBanc Capital Markets maintained an Overweight rating with a price target of $800, based on positive consumer survey results and confidence in Intuit’s fiscal year 2025 growth guidance for its Consumer Group.
In corporate governance, Intuit’s shareholders approved an amendment to its Restated Certificate of Incorporation, providing certain officers with liability exculpation to the fullest extent allowed by Delaware law. The amendment aligns with recent changes in Delaware’s legal framework and was filed with the state’s Secretary of State. Additionally, shareholders elected thirteen directors to the board and ratified Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending July 31, 2025. These developments underscore Intuit’s strategic direction and commitment to robust corporate governance.
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