Tax season is shining a spotlight on Intuit , and it could be a catalyst for the maker of TurboTax software. “The IRS began accepting e-filings in late January, which brings the TurboTax-led consumer segment of Intuit into greater focus for investors,” wrote Wells Fargo analyst Michael Turrin in a Wednesday report. “We think the relative resilience of Intuit’s core businesses is flying under the radar currently and focus in on tax season as a catalyst in this report,” he said. Turrin rated the stock overweight and gave it a price target of $475 per share – or upside of 19.9% from Tuesday’s close. Further, Intuit is expected to post its fiscal second-quarter results on Thursday. INTU 1Y line Intuit’s performance over the past 12 months. This year, Intuit could see price growth from its push toward TurboTax Live Assisted and full-service offerings, which link up taxpayers with experts to guide them through the filing process, Turrin wrote. Wells Fargo’s study of U.S. tax filers over the past decade shows that TurboTax and other do-it-yourself filing methods have been accounting for a growing proportion of the overall mix, the analyst wrote. Last year, these methods accounted for a combined 45% of total tax returns. Intuit’s TurboTax is also outpacing its competitors, expanding at a 4.3% compound annual growth rate since 2012, versus 3.1% for others in the DIY tax prep space, according to Wells Fargo. The price target of $475 on Intuit is “reasonable in our view, given strong competitive positioning in the company’s core markets and steady profile of consistent growth and mid-teens+ EPS expansion,” Turrin said. – CNBC’s Michael Bloom contributed to this report.
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