Janney Montgomery Scott Initiates Coverage on Intuit (INTU) with a BUY; Expects Strong Growth Rebound

June 30, 2009 9:18 AM EDT

Janney Montgomery Scott initiates coverage on Intuit (Nasdaq: INTU) with a BUY rating. Price target (Fair Value Estimate) $34.

Janney analyst says, "Intuit is a premier provider of software and services to small and medium sized businesses, financial institutions, consumers, and accounting professionals. The company's products are de facto standards in several of the market segments it serves. We believe the company is likely to experience a strong rebound in growth in several of its segment over the next couple of years, growing revenue and earnings well in excess of current consensus estimates. With the stock currently trading at a valuation below its peers, we find the risk/reward compelling at current levels and initiate coverage with a BUY rating."

"...We anticipate reacceleration of consumer tax growth to 12% in F2010 (from 6% in F2009), particularly on the strength of the company's on-demand tax offering and, finally, we anticipate 8% growth in F2010 in other businesses (after a 15% decline in F2009)..."

Intuit Inc. (Intuit) is a provider of business, financial management solutions for small and medium sized businesses, financial institutions, consumers and accounting professionals.[SM]

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