Intuit Inc. INTU 1.72% shares are down 3.2 percent in Wednesday’s session after the company reported revenue and earnings beats in fiscal Q3. Instead, the market seems to be focusing on managements cautious guidance for the rest of the year, including full-year Quick Books Online (QBO) subscription guidance of 1.45-1.5 million.

Deutsche Bank analyst Nandan Amladi believes traders are overreacting to the guidance, and investors should pounce on the buying opportunity.

“We tweak our ests for updated guidance and reiterate our Buy rating and $125 PT based on a C17E FCF of $5.53/sh (unch) and 1.5x EV/uFCF/G, above large-cap software due to superior competitive positioning and increasing recurring revenue,” Amladi explained.

Looking Forward

Amladi sees product innovation and a growing market as keys to Intuit’s continued success.

TurboTax gained roughly 3.0 percent market share in Q3 and now holds nearly two-thirds (65 percent) of overall share. Management highlighted 20 new features and enhancements added to the software in Q1, and Amladi believes…

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