Intuit Inc (NASDAQ:INTU, XETRA:ITU) was reinstated with a ‘Buy’ rating and a $400 price target by Bank of America, which said the financial software company’s current valuation does not fully reflect the strength of its business, growth profile, and profitability.
The bank said it values Intuit at 14 times estimated calendar 2027 enterprise value to free cash flow, citing what it described as a “high-quality platform” with durable competitive positioning and best-in-class margins.
Bank of America’s positive view comes after a difficult stretch for the stock, which the analysts noted has declined about 55% over the last 12 months and roughly 20% following the company’s most recent quarterly report. Shares traded hands at $307 on Wednesday afternoon.
The analysts pointed to several growth initiatives across Intuit’s consumer and business segments as reasons for a more constructive outlook.
In the Consumer business, which represents about 41% of total revenue, TurboTax Live has become a larger contributor to growth and now accounts for approximately 53% of segment revenue. Bank of America said the assisted tax offering has continued to expand rapidly, with growth of 47% in 2025 and 36% in 2026.
While the firm acknowledged ongoing pressure in the lower-income tax filer segment, particularly among customers earning under $50,000 annually, it said those challenges are being offset by Intuit’s strategy of shifting users toward higher-value assisted services. The analysts noted that assisted tax preparation represents roughly 88% of the estimated $42 billion US tax preparation market.
The report also addressed concerns around artificial intelligence and the potential impact of AI-powered tax and accounting tools. Bank of America believes that AI is creating some pressure at the low end of the Consumer market through cheaper and AI-native alternatives, but argued that the broader effect is likely to be positive for Intuit over time.
According to the analysts, AI is expected to enhance Intuit’s value proposition through greater automation, data integration, and customer support capabilities rather than replace its core offerings. They added that trust, expertise, and human-assisted services remain important differentiators in tax preparation, limiting the risk of significant disruption.
In the company’s business segment, Bank of America highlighted continued momentum in Intuit’s Online Ecosystem, which it said is generating growth of about 19%. The bank described QuickBooks as deeply embedded in customer workflows across accounting, payments, payroll, and reporting, creating high switching costs and supporting long-term customer retention.
The analysts forecast Online Services revenue growth of 17% to 19% from 2026 through 2028 and said products such as Enterprise Suite and QuickBooks Advanced could help Intuit expand further into larger small- and medium-sized business customers.
Bank of America also pointed to the company’s profitability as a key strength, noting operating margins of around 40% and free cash flow margins near 35%. The bank believes that those metrics, combined with Intuit’s growth opportunities and established market position, support its bullish stance on the stock.