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On Monday, Mizuho (NYSE:MFG) Securities increased its price target on Intuit Inc. (NASDAQ:INTU) to $875 from the previous target of $825, while reaffirming its Outperform rating on the stock. The adjustment follows a thorough analysis of Intuit’s QuickBooks business, particularly after a robust TurboTax season which has now turned investor attention towards the QuickBooks segment. According to InvestingPro data, Intuit currently trades near its 52-week high of $773.45, with a market capitalization of $215.23 billion. The company’s strong market position is reflected in its impressive gross profit margin of 80.26%.
Siti Panigrahi, an analyst at Mizuho, provided insights into the expected performance of Intuit’s QuickBooks, including detailed revenue projections for QuickBooks Online Accounting, Online Services, and Intuit Enterprise Suite (IES). The analyst projects that Intuit’s online ecosystem revenue could grow at a compound annual growth rate (CAGR) of 22% from fiscal year 2026 to 2028, surpassing the consensus estimate of 18%. This optimistic outlook aligns with InvestingPro data showing that 20 analysts have revised their earnings upward for the upcoming period. Subscribers to InvestingPro can access detailed financial health metrics and over 15 additional ProTips for deeper analysis.
The forecasted growth is primarily attributed to several factors. These include increased traction in the mid-market segment through products like QBO Advanced and IES, broader adoption of the platform driven by continuous portfolio expansion and a growing proportion of mid-market businesses, a shift in the core QBO mix with AI Agents potentially encouraging upgrades, and the company’s ability to implement pricing strategies, as evidenced by the recent price increases factored into the estimates for fiscal year 2026. The company’s current revenue growth of 15% year-over-year demonstrates its execution capability in implementing these strategies effectively.
Panigrahi emphasized that this anticipated growth, coupled with double-digit growth in the Consumer segment and ongoing margin expansion, could lead to a reevaluation of Intuit’s stock multiple. The analyst’s confidence is bolstered by Intuit’s solid performance in fiscal year 2025 and the potential for increased monetization of AI technologies.
The Outperform rating by Mizuho signals the firm’s positive outlook on Intuit’s shares, suggesting that the company’s performance is likely to outpace the average return of the stocks that Mizuho covers. The new price target of $875 reflects the firm’s assessment of Intuit’s future growth prospects and financial performance based on the detailed analysis provided.
In other recent news, Intuit has reported robust fiscal third-quarter results, surpassing consensus estimates with total revenue growth of $7.8 billion, a 15% year-over-year increase. Earnings per share also exceeded forecasts at $11.65, compared to the anticipated $10.93. TurboTax Live saw a significant 47% growth, contributing to an 11% revenue increase in the consumer group segment. Analysts from Stifel and Evercore ISI responded positively, with Stifel raising their price target to $850 and Evercore ISI to $785, both maintaining a Buy or Outperform rating. Intuit’s recent announcement of price hikes for QuickBooks products, set for fiscal year 2026, is seen as a strategic move to enhance revenue streams, with Stifel analysts projecting robust growth for the company’s Global Business Segment. Mizuho Securities also maintained an Outperform rating with a price target of $825, highlighting Intuit’s potential to leverage new AI technologies for additional revenue. Despite challenges with Mailchimp, Intuit’s online services and strategic pricing initiatives are expected to support low-teens revenue growth. These developments reflect confidence in Intuit’s ability to execute its growth strategy effectively.
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