Intuit Inc. (NASDAQ:INTU) is a deep value stock to invest in now. On May 27, BofA Securities resumed coverage of Intuit Inc. (NASDAQ:INTU) stock with a Buy rating and a $400 price target. The positive stance affirms the research firm’s confidence in the company’s outlook despite the stock declining by over 50% over the past year.
Amid the stock underperformance, Intuit continues to fire on the operational front. Its TurboTax Live is growing at a 36% rate and accounts for 53% of the Consumer segment revenue. Additionally, Intuit’s Online Ecosystem continues to drive 19% growth in the business segment. In addition, the company boasts operating margins of 40% and free cash flow margins of 35%, both of which are best-in-class.
According to BofA Securities, franchise quality and growth opportunities are not fully reflected in the current valuation. Consequently, the $400 price target is based on 14 times the company’s 2027 enterprise value-to-free cash flow estimate.
Intuit has been paying dividends for 15 years. It currently pays a passive dividend of about $4.80, translating to a yield of about 1.5%.
Intuit Inc. (NASDAQ:INTU) is a global financial technology platform that simplifies financial, tax, and marketing management for individuals, small businesses, and professionals. Their ecosystem of AI-driven software is designed to help users track money, get paid, and stay organized.
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.
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