Intuit Assist Poised To Boost Competitive Moat, Gets A Price Target Boost From Analysts

A couple of analysts raised the price target on Intuit Inc INTU following its 'Intuit Innovation Day' yesterday. 

The company launched Intuit Assist, its new GenAI-powered assistant ingrained across all major business segments, including QuickBooks, Mailchimp, TurboTax, and Credit Karma.  

BMO Capital Markets analyst Daniel Jester raised the price target to $605 from $560 and maintained an Outperform rating.

The analyst sees Intuit as well-positioned to leverage generative AI and machine learning aggressively and thinks launching Intuit Assist can boost the innovation trajectory.

Jester believes the launch of Intuit Assist can offer domain-specific Generative AI assistant features built on the company's GenAI operating system.

The analyst sees Intuit Assist as the biggest medium-term growth opportunity with a vast set of potential use cases for self-employed and small to mid-sized businesses.

Jester continues to expect revenue and EPS of $15,998 million and $16.32 (vs. consensus of $16.37) in FY24 and $17,930 million and $18.61 (consensus: $18.64) in FY25. 

KeyBanc analyst Alex Markgraff upped the price target to $600 from $535 and reaffirmed an Overweight rating.

The analyst is pleased with the company's innovation drive across its platform and sees the launch of Intuit Assist as an opportunity to broaden the competitive moat and boost value.

Markgraff is keen to understand the first and second-order impacts of the launch on engagement, retention/churn, ARPU, etc., given the product suite is poised to offer greater intelligence and value to SMBs and consumers.

The analyst estimates revenue and EBIT of $16,059.6 million (vs. consensus of $16,022.7 million) and $6,237.4 million for FY24 and $18,164.5 million (vs. consensus of $18,040.0 million) and $7,073.1 million for FY25, respectively.  

Also Read: Intuit Earns Multiple Price Target Hikes After Stellar Q4 Results: What's Driving The Bullish Outlook?

Price Action: INTU shares are trading higher by 0.72% at $554.92 on the last check Thursday.