Intuit Inc. (NASDAQ: INTU) remains undervalued despite its recent stock gains, with Mizuho analysts forecasting a 25% upside. The firm reiterates its “Outperform” rating and increases its price target to $765, highlighting strong consumer business growth and favorable valuation metrics.
Intuit’s Valuation: A Hidden Growth Story?
Despite a 10% rally since its Q2 earnings, Intuit shares are still 14% below recent highs and trading near a two-year low valuation multiple. Mizuho’s analysis suggests the market is underestimating the strength of Intuit’s consumer business, particularly:
TurboTax franchise momentum
Credit Karma segment growth
Improving e-filing trends
Using a sum-of-the-parts (SOTP) valuation, Mizuho assigns an enterprise value of $221 billion, arguing that Intuit’s current valuation does not reflect its long-term growth potential.
TurboTax and Consumer Business Drive Upside
One of the key growth catalysts identified is TurboTax, where analysts note:
? Stronger unit growth than previous estimates? Higher average revenue per return (ARPR)? Improving seasonal pricing trends
TurboTax recently saw higher promotional prices, signaling a return to normal seasonality and revenue growth stability.
For investors tracking financial performance trends, the Financial Growth API offers insights into Intuit’s earnings momentum and profitability trends.
What’s Next? Fiscal 2025 Guidance in Focus
Mizuho expects Intuit to raise its fiscal 2025 guidance when it reports Q3 results, citing strong consumer and small business segment growth.
With a bullish long-term outlook, analysts believe current market prices undervalue Intuit’s diversified revenue streams, presenting a compelling opportunity for investors.
Intuit’s historical earnings and revenue trends can be analyzed further through the Earnings Historical API, providing context on financial performance over time.
Key Takeaways for Investors
? Intuit remains undervalued despite recent gains? TurboTax & Credit Karma drive consumer business growth? Q3 earnings may bring an upward revision to fiscal 2025 guidance? Mizuho raises price target to $765, projecting 25% upside
With strong fundamentals and improving valuation metrics, Intuit may be a high-potential stock for long-term investors.
