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On Monday, Mizuho (NYSE:MFG) Securities expressed continued optimism for Intuit Inc. (NASDAQ:INTU), a financial software company, by raising its price target from $750 to $765. The firm maintained its Outperform rating on the stock, anticipating a significant 25% upside potential. Currently trading at $613.84, Intuit has shown strong momentum with an 8.22% return over the past week, according to InvestingPro data.
Mizuho analysts highlighted their confidence in Intuit’s performance as the company heads into the second half of fiscal year 2025. The firm’s sum-of-the-parts (SOTP) analysis supports the belief in the stock’s growth potential, despite a 14% decline from its recent peak. According to Mizuho, Intuit’s enterprise value could reach approximately $221 billion, with an implied stock price of $767, offering a substantial 25% upside from current levels. The company maintains impressive gross profit margins of 79.82% and has demonstrated solid revenue growth of 13.73% over the last twelve months.
The valuation reflects the strong performance of Intuit’s TurboTax franchise, which Mizuho suggests constitutes over 80% of the company’s value. The analysts also believe that the market is undervaluing Intuit’s Credit Karma operation. Following Intuit’s robust fiscal second-quarter results and early positive trends in TurboTax unit sales and average revenue per user (ARPR) growth, there is an expectation of further positive developments.
Mizuho anticipates that Intuit could raise its fiscal year 2025 guidance based on the third-quarter fiscal results, bolstered by the momentum in its core products and potential from Credit Karma and the broader Global Business Solutions Group (GBSG). The firm’s revised estimates post-fiscal Q2 have reinforced their positive stance on Intuit’s stock, leading to the increased price target.
In other recent news, Intuit reported strong earnings results that exceeded analyst expectations, with revenues reaching $3.96 billion and earnings per share (EPS) of $3.32, surpassing forecasts by $0.75. The company’s Consumer Group revenue outperformed projections, aided by a strong start to the tax season and increased customer engagement with TurboTax. Intuit’s Online Ecosystem revenue grew by 21%, while Online Services revenue expanded by 19%. Credit Karma also showed robust performance, contributing to the positive financial results.
Analysts from Piper Sandler raised their price target for Intuit shares to $785, reflecting confidence in the company’s trajectory and AI-driven initiatives. Meanwhile, Stifel maintained a Buy rating with a $725 price target, citing Intuit’s resilience and potential for durable growth. BMO Capital Markets adjusted their price target to $714 but kept an Outperform rating, highlighting Intuit’s execution in tax-related services. Conversely, Scotiabank (TSX:BNS) lowered its price target to $600, maintaining a Sector Perform rating despite Intuit’s solid earnings performance. Lastly, BofA Securities revised their price target to $740, maintaining a Buy rating, noting Intuit’s strategic progress and growth potential.
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