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Investing.com-- Intuit Inc (NASDAQ:INTU) remains undervalued despite recent gains, with shares offering 25% upside, supported by strong consumer business growth and a favorable sum-of-the-parts (SOTP) valuation, according to Mizuho (NYSE:MFG) analysts.
In a research note, Mizuho reiterated its "Outperform" rating on Intuit and raised its price target to $765 from $750, citing an enterprise value estimate of $221 billion.
Analysts noted that while Intuit shares have climbed 10% since its second-quarter earnings, they remain 14% below their recent peak, trading near two-year low valuation multiples.
The brokerage believes the current valuation underappreciates the strength of Intuit’s TurboTax franchise and Credit Karma segment, with the market heavily discounting its consumer business.
Mizuho highlighted early momentum in TurboTax unit growth and average revenue per return (ARPR) as key drivers, alongside improving e-filing trends.
Analysts also pointed to a recent increase in TurboTax promotional prices, which suggests a return to normal seasonal pricing trends.
With continued growth in both consumer and small business segments, Mizuho expects Intuit to raise its fiscal 2025 guidance when it reports fiscal third-quarter results.
The firm maintains its bullish outlook, emphasizing that current valuations do not fully reflect Intuit’s diversified growth potential.