Intuit Under-performance Has Stemmed From Valuation Reset, Analyst Upgrades Stock

Core Viewpoint - JP Morgan analyst Mark Murphy upgraded Intuit Inc from Neutral to Overweight and raised the price target from $640 to $660, citing the company's dependable and innovative cloud platform serving various customer segments [1] Company Performance - Intuit's stock has underperformed, trading below levels from approximately 3.5 years ago, with a decline of about 14% compared to the S&P 500's increase of 23% [2][3] - The company faced challenges including a growth reset for Credit Karma and a perceived loss of TurboTax market share, leading to a reduction in long-term growth targets for these businesses [4] Market Position and Valuation - The updated price target reflects a shift in peer group multiples, with Intuit trading at a premium due to its less competitive core markets and higher perceived value of its QuickBooks franchise [5][6] - Murphy projected third-quarter revenue of $7.51 billion and adjusted EPS of $10.92, indicating a positive outlook despite recent challenges [6]