Intuit Inc. (NASDAQ: INTU) remains undervalued despite recent stock gains, with Mizuho analysts projecting a 25% upside. The brokerage reiterated its "Outperform" rating and raised its price target to $765 from $750, citing strong consumer business growth and a favorable sum-of-the-parts (SOTP) valuation.
While Intuit shares have climbed 10% since its Q2 earnings, they remain 14% below recent highs, trading near two-year low valuation multiples. Analysts believe the market underestimates the strength of TurboTax and Credit Karma, heavily discounting its consumer business.
Mizuho highlighted TurboTax's early unit growth momentum and rising average revenue per return (ARPR) as key growth drivers. Improving e-filing trends and a recent price increase for TurboTax promotions indicate a return to normal seasonal pricing patterns.
With continued expansion in both consumer and small business segments, analysts expect Intuit to raise fiscal 2025 guidance in its upcoming Q3 earnings report.
Mizuho maintains a bullish outlook, emphasizing that Intuit’s diversified business model and strong fundamentals remain underappreciated at current valuation levels.
