- Mizuho analyst Siti Panigrahi reiterated a Buy on Intuit Inc INTU and a price target of $650.
- After an online price increase in QuickBooks in May, Intuit shared price hikes on QB Desktop in early August, raising Pro Plus and Premier Plus prices by 57% and 45%, respectively, he noted.
- Additionally, Intuit looked to sell QB Desktop Plus products at full MSRP, with no discounts in any channel.
- However, Intuit kept the pricing intact for QB Desktop Enterprise, which has already transitioned to subscription-based pricing, he highlighted.
- Panigrahi believed this price increase, coupled with the change in discount policy, would encourage customers to consider QB online products.
- Furthermore, on QB desktop payroll, Intuit plans to consolidate subscription plans for payrolls, he added.
- Additionally, Intuit looked to transition earlier Standard Payroll to Enhanced Payroll. The earlier plan costs $500 per year with $2 per employee per month (PEPM), but the new pricing will increase to $500/per year with $5 PEPM.
- While Panigrahi expected INTU to exceed Q4 expectations, he believed investors would remain focused on FY23 guidance.
- This QB Desktop price increase and the recent announcement of QB Online price hikes led to his conviction of Intuit exceeding QuickBooks expectations for FY23.
- Price Action: INTU shares traded lower by 0.11% at $488.71 on the last check Tuesday.
- Photo by Mike Mozart via Flickr
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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