Mizuho Maintains Outperform Rating on Intuit (INTU), Sees a Buying Chance

Intuit Inc. (NASDAQ:INTU) is one of the 10 Unrivaled Stocks of the Next 3 Years. On August 25, Mizuho reiterated its Outperform rating on Intuit Inc. (NASDAQ:INTU) with a price target of $875.

The firm sees the recent weakness in Intuit Inc.’s (NASDAQ:INTU) stock price as a buying opportunity.

Mizuho noted that the company’s Global Business Solutions Group (GBSG) 14-15% year-over-year growth forecast was lower than expected. However, the firm believes that the company’s core business momentum is still strong, especially in key growth segments.

According to Mizuho, Intuit Inc.’s (NASDAQ:INTU) GBSG guidance implies 19% QuickBooks Online (QBO) ecosystem growth. This aligns with the initial guidance for fiscal year 2025 after adjusting for a one-point headwind from Mailchimp. AI is also seen as an important driver of growth.

Mizuho sees Intuit Inc.’s (NASDAQ:INTU) guidance as conservative and believes QBO growth could reach 23%. The firm views TurboTax’s forecast of 8% growth as also conservative with many growth drivers in place to support another year of double-digit growth.

The firm noted that the company’s Investor Day on September 18 is an important event, which could offer more details about QBO and TurboTax. This could drive investor confidence in the company’s future growth.

Intuit Inc. (NASDAQ:INTU) is an American multinational financial technology and business software company that offers a wide range of products and services.

While we acknowledge the potential of INTU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Top 10 Stocks Under $10 That Could Triple and 10 Best Affordable Stocks Under $50 to Buy.

Disclosure: None. This article is originally published at Insider Monkey.