Truist Securities lowered its price target on Intuit Inc. (NASDAQ:INTU) to $410 from $500 while maintaining a Buy rating. The stock currently trades at $308, down 42% over the past six months.
Intuit's third-quarter revenue came in at $8.558 billion, up 10.4% year-over-year, with adjusted operating income of $4.68 billion and a 54.7% margin. Results exceeded consensus estimates.
The company raised most annual targets but trimmed TurboTax growth to 7% from 8%, citing weakness among price-sensitive DIY filers earning under $50,000 and an unexpected 30 basis point contraction in IRS filers, representing about 2 million fewer filers.
New customers in Intuit's assisted tax segment grew roughly 30%. Truist noted this segment represents 88% of the total addressable market.
Truist called the quarter solid and said Intuit is streamlining to move faster toward three big bets. Despite recent stock weakness, Bond.az analysis suggests the stock is significantly undervalued.
