Intuit selloff on media report unwarranted, says Jefferies

Jefferies believes the selloff in Intuit (INTU) shares following a Washington Post report of a potential Internal Revenue Service mobile tax filing app is unwarranted. Such an app is unlikely to be a high priority “in a long list of initiatives to reduce government waste,” the analyst tells investors in a research note. In addition, the IRS Direct File pilot had little success, reaching 0.1% of tax filers, while Intuit makes money on more complex, paying tax filers, not free and simple ones, says Jefferies. The firm thinks the U.S. government does not have a track record of building user-friendly software. It keeps a Buy rating on Intuit with a $790 price target The stock in midday trading is down 5%, or $36.30, to $642.51.