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On Thursday, Stifel analysts reiterated their Buy rating on Intuit stock (NASDAQ:INTU) with a price target of $850.00. The stock, currently trading near its 52-week high of $758.77, has shown impressive momentum with a 13% gain in the past week alone. According to InvestingPro data, 20 analysts have recently revised their earnings estimates upward for the upcoming period. The firm’s analysis follows Intuit’s recent announcement of price increases for its QuickBooks Accounting and Payroll products, affecting both Desktop and Online users. The new pricing is set to be implemented in early fiscal year 2026.
Stifel’s assessment is based on a pricing analysis framework from the previous year, with a detailed examination of the potential fiscal year 2026 impact on the company’s Global Business Segment Growth (GBSG), particularly within the Online segment. The analysts project that the significant pricing adjustments, coupled with Intuit management’s observations of low churn rates due to pricing and possible additional gains from artificial intelligence, should maintain robust growth momentum for GBSG throughout FY26.
According to Stifel’s analysis, Intuit’s GBSG is poised to achieve the company’s long-term target of 15-20% revenue growth, building on its current revenue growth of 15%. With an impressive gross profit margin of 80.26% and strong market position as a $210 billion company, Intuit continues to demonstrate robust financial performance. The analysts also suggest that the price increases across the Desktop products might drive users towards QuickBooks Online Advanced/Intuit Ecosystem Solutions (QBOAdvanced/IES). This transition is expected to foster further product attachment and Average Revenue Per Customer (ARPC) growth.
The price hikes announced by Intuit earlier in the week are part of the company’s strategy to enhance revenue streams. Intuit’s management has expressed confidence in their pricing strategy, emphasizing the low customer turnover following previous price increases. InvestingPro analysis indicates the company maintains a healthy financial position with moderate debt levels and has consistently raised its dividend for 14 consecutive years. For deeper insights into Intuit’s valuation and 18 additional ProTips, including detailed financial health metrics, subscribers can access the comprehensive Pro Research Report. This suggests that the company’s customer base sees value in the services provided, despite the rising costs.
The analysts at Stifel conclude that the combination of Intuit’s strategic pricing initiatives and the ongoing development of its product offerings should contribute positively to the company’s financial performance in the upcoming fiscal year. The firm’s maintained Buy rating and price target reflect confidence in Intuit’s ability to execute its growth strategy effectively.
In other recent news, Intuit reported robust third-quarter results that exceeded analyst expectations, with total revenue reaching $7.8 billion, marking a 15% year-over-year increase. Earnings per share also surpassed forecasts, coming in at $11.65 compared to the anticipated $10.93. The company’s standout performance in the TurboTax Live segment, which grew by 47% year-over-year, contributed significantly to these results. Following these strong earnings, Evercore ISI raised its price target for Intuit to $785, while Stifel and KeyBanc both increased their targets to $850, each maintaining positive ratings on the stock.
Intuit’s strategic expansion into the upmarket segment and the introduction of new offerings within its QuickBooks business have been highlighted as key drivers of future growth. The Global Business Services division also saw a 19% increase, with strong contributions from QuickBooks Online Accountant and Ecosystem Solutions. Despite challenges with Mailchimp, Intuit’s online services continue to perform well, supported by the Money platform and Payroll services. Analysts from Mizuho (NYSE:MFG) have noted that Intuit’s pricing changes and the anticipated introduction of artificial intelligence offerings are expected to further enhance revenue opportunities.
Intuit has updated its full-year guidance, now expecting mid-point revenue of $18.74 billion, up 15% from the previous forecast. This positive outlook is bolstered by Intuit’s strategic moves and the successful integration of Credit Karma, which exceeded revenue projections. Analysts remain optimistic about Intuit’s growth trajectory, with several firms reiterating their confidence in the company’s ability to sustain its market position and capitalize on emerging opportunities.
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