Intuit Inc

INTU: XNAS (USA)
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Intuit Earnings: Expansion Into Midmarket Supports Solid Revenue Growth; Shares Fairly Valued

Wide-moat Intuit posted second-quarter results above our expectations. Total revenue went up by 17% year over year to $4.0 billion, giving the company a head start as it enters the peak tax season. Despite Intuit’s strong growth momentum, we are trimming our fair value estimate to $580 from $640 as we transfer coverage to a new analyst. We expect continued investments from the company to build the Intuit Enterprise Suite, turning midmarket into a new growth engine. We view Intuit’s shares as fairly valued following a 6% jump in after-hours trading.

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