Analyst Note| Julie Bhusal Sharma |
Intuit closed its fiscal year satisfactorily—beating FactSet consensus all around and well above Intuit’s former high-end of guidance. The strong results were broad-based other than Mailchimp underperforming against Intuit’s expectations. Nonetheless, things continue to look up for Intuit, as guidance for fiscal 2023 was strong. We’re maintaining our fair value estimate for the wide-moat name at $511 per share. Shares are approaching our fair value, as they are up nearly 6% after hours to near $475— almost fully reversing what had been share declines of 6% over the last five days amid an overall market selloff. We believe this leaves Intuit fairly valued given our Medium Uncertainty Rating. As a result, we think there are more attractively priced wide-moat stocks for investors at the moment—such as Workday shares, which we value at $229 per share.