Evercore ISI reiterates Intuit stock rating on tax strategy shift

Investing.com reports that Evercore ISI has reaffirmed its Outperform rating and set a $400.00 price target for Intuit Inc. (NASDAQ:INTU) following the company's annual Investor Day. Despite the stock's 53% decline over the past year, trading at $313.13, analysis suggests Intuit remains undervalued within the software sector compared to peers.

The firm highlights Intuit's strategy to regain market share in its tax business, particularly in DIY offerings, and accelerate growth across its Global Business Solutions segment. Intuit acknowledges a 1% loss of IRS e-file share in fiscal year 2026 due to the DIY segment, with price as the primary factor for customer losses. To counteract this, Intuit is expanding its DIY lineup, including the $0 federal and $15 state Credit Karma Tax offering, while the traditional TurboTax DIY segment targets customers with more complex tax needs, and TurboTax Live and Assisted focus on expert assistance.

The company intends to prioritize customer and e-file growth over maximizing revenue per customer on initial tax transactions. Intuit's tax business will serve as a gateway to financial products like Credit Karma Money, aiming for greater customer lifetime value. On the Global Business Solutions side, management focuses on customer acquisition through QuickBooks Free and Lite offerings, deeper integration of Money into customer workflows, and mid-market expansion through vertical-specific offerings and the accountant ecosystem.

Despite short-term challenges, Intuit maintains strong gross profit margins of 81% and trades at a P/E ratio of 19.1. Investors can access the Pro Research Report for more insights into Intuit's valuation and growth potential.