CLSA initiates Intuit stock coverage with outperform rating

Investing.com - CLSA initiated coverage on Intuit (NASDAQ:INTU) with an outperform rating and a $900 price target on Thursday. According to InvestingPro data, the stock is currently trading near its 52-week high of $773.45, with an impressive financial health score rated as "GREAT."

The research firm believes Intuit is positioned to dominate the $89 billion mid-market accounting software market and adjacent financial services in the U.S. by leveraging its scale, platform advantages, and brand investment.

CLSA notes that Intuit’s rapidly growing share of the U.S. financial ecosystem’s revenue pool, combined with $2.9 billion spent on research and development last year, places the company in a strong position to exceed consensus expectations in its core global business solutions group segment.

While the firm monitors movements at competitor Xero, it states that "Intuit’s visibility over US SME financials puts it in another orbit."

CLSA cites Intuit’s nascent penetration of its total addressable market as offsetting execution risk, supporting the outperform rating and $900 target price.

In other recent news, Intuit has caught the attention of several analysts following its latest earnings and strategic developments. Mizuho Securities raised its price target for Intuit to $875, citing a positive outlook for the QuickBooks segment and projecting a compound annual growth rate of 22% for its online ecosystem revenue from fiscal years 2026 to 2028. This comes after a strong TurboTax season, with analysts noting the potential for increased monetization of AI technologies. Meanwhile, Stifel analysts have maintained their Buy rating with a price target of $850, highlighting Intuit’s recent price hikes for QuickBooks products as a strategic move to enhance revenue streams.

These price increases are expected to drive users towards more advanced offerings, potentially boosting the company’s revenue growth. BMO (TSX:BMO) Capital Markets also reiterated an Outperform rating, emphasizing Intuit’s growth potential in the Assisted tax category and its QuickBooks business. This outlook is supported by new AI innovations and financial technology offerings. The firm’s analysis suggests that Intuit’s internal AI utilization could support margin expansion. Overall, these recent developments reflect a positive sentiment among analysts regarding Intuit’s growth prospects and strategic initiatives.

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