Intuit stock rises as Mizuho reiterates Outperform on AI agent launch

Published 01/07/2025, 16:08
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Investing.com - Intuit (NASDAQ:INTU), a prominent software company with an impressive 80% gross profit margin and market capitalization of $218 billion, received a vote of confidence from Mizuho (NYSE:MFG) on Tuesday as the financial software provider officially launched its new AI agents across its product lineup.

Mizuho maintained its Outperform rating and $875.00 price target on Intuit, which currently trades near its 52-week high of $790.50, following the company’s announcement of AI agents, web and mobile interfaces, and Customer Hub deployment beginning today "to a range of QuickBooks Online products and customers in the US." According to InvestingPro, 20 analysts have recently revised their earnings estimates upward for the upcoming period.

The initial rollout includes AI agents for Payments, Accounting, Finance and Customer, with Marketing, Payroll, and Project Management Agents expected to follow in the coming months.

Mizuho noted that these AI capabilities are being embedded across multiple QuickBooks Online tiers and SKUs, potentially driving mix shift and catalyzing customer upgrades to higher-priced offerings.

The research firm views AI agents as "a necessary evolution to simplify small business operations and reduce costs," and expects Intuit to introduce standalone AI SKUs as adoption grows, creating additional monetization opportunities and strengthening platform retention.

In other recent news, Intuit has acquired Relevvo, an AI-powered sales and marketing platform, to enhance its B2B engagement capabilities. The acquisition aims to strengthen Intuit’s service to mid-market customers by integrating Relevvo’s AI technology with its existing customer data. Meanwhile, several analysts have shared positive outlooks on Intuit’s future. CLSA initiated coverage on Intuit with an outperform rating, emphasizing the company’s potential to dominate the mid-market accounting software sector. BMO Capital Markets reiterated its Outperform rating, highlighting growth potential in the Assisted tax category and QuickBooks business. Mizuho Securities raised its price target for Intuit to $875, citing expected growth in the QuickBooks segment and a compound annual growth rate of 22% from fiscal year 2026 to 2028. Stifel analysts also maintained a Buy rating, focusing on Intuit’s pricing strategy and growth drivers for TurboTax Live units. These developments indicate a strong confidence among analysts in Intuit’s growth prospects and financial performance.

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