Beyond Intuition: Intuit Begins Fiscal 2022 With Impressive Results; Raise FVE; Shares Overvalued

Wide-moat Intuit kicked off fiscal 2022 with top and bottom line results both eclipsing our expectations. The solid financials were buoyed by strength in small business and self-employed, or SBSE, and Credit Karma segments. Management also provided strong guidance for fiscal 2022, with the firm expecting to grow its top line at a healthy clip--near 30% year over year. With a good start to the year and the expectation of continued strength, we are raising our fair value estimate for wide-moat Intuit to $511 per share from $424 per share. Shares were up 9% after hours, trading at $685 per share, leaving the stock overvalued, in our view.