Intuit: Investor Day Adds To Confidence In Buy Case

|
About: Intuit Inc. (INTU), Includes: SGGEF, XROLF
by: Blue Sky Capital
This article is exclusive for subscribers.
Blue Sky Capital
Hedge fund analyst, long/short equity
Summary

Intuit's investor day yesterday provided further operational data and strategy details which add to our confidence in our Buy case.

Customer retention has improved further, and QuickBooks Online growth has been strong, including in the highly contested U.K. market.

Management also shared more details on how new products, including small business finance, have broadened customer pathways with Intuit.

Intuit is set to continue its strong structural growth from resilient existingcustomers, large pools of new customers and cross-selling extra products.

At $263.00, shares can deliver a low-teens annual return from EPSgrowth, stable multiples and a 0.8% dividend yield. We re-iterate Buy.

Introduction

Intuit (INTU) is one of our favourite software stocks and we initiated our coverage on the company on Seeking Alpha with a Buy recommendation last month (see "Intuit: Multi-Year Double-Digit Compounder"