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Investing.com - Mizuho maintained its Outperform rating and $875.00 price target on Intuit (NASDAQ:INTU) stock, describing recent share weakness as a buying opportunity. The stock has declined 7.61% over the past week, and according to InvestingPro data, the RSI suggests the stock is in oversold territory. With analyst targets ranging from $600 to $971, Mizuho’s target represents significant upside potential.
The firm acknowledged that Intuit’s GBSG guidance of 14-15% year-over-year growth (15.5-16.5% excluding Mailchimp) fell short of expectations but emphasized that core business momentum remains strong, particularly in key growth segments. This guidance aligns with Intuit’s impressive 15.63% revenue growth over the last twelve months, supported by robust gross profit margins of 80.39%.
Mizuho’s analysis suggests the GBSG guidance implies 19% QuickBooks Online (QBO) ecosystem growth, consistent with FY25’s initial guidance after adjusting for a one-point Mailchimp headwind, with artificial intelligence representing another key growth driver.
The firm views Intuit’s guidance as conservative, seeing upside potential to 23% QBO growth, while TurboTax’s 8% growth guidance also appears conservative with multiple growth levers in place to potentially support another year of double-digit growth.
Mizuho identified the upcoming Investor Day on September 18 as a key catalyst that could provide incremental metrics on QBO and TurboTax, potentially driving investor confidence regarding upside potential.
In other recent news, Intuit reported a 20% revenue growth for the fourth quarter and a 16% increase for fiscal year 2025. Despite these positive results, the company’s guidance for the first quarter of fiscal 2026 has been described as "light," causing some concern among investors. RBC Capital maintained its Outperform rating with an $850 price target, while KeyBanc lowered its target to $825, citing headwinds from Mailchimp. UBS also adjusted its price target to $725, noting conservative guidance for the upcoming fiscal year. Stifel reduced its target to $800, despite acknowledging solid performance and strong growth in certain segments. BofA Securities similarly lowered its target to $800 but maintained a positive outlook on Intuit’s core franchises, QuickBooks and TurboTax. These developments reflect mixed reactions from analysts, who generally remain optimistic about Intuit’s long-term prospects.
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