• Mizuho analyst Siti Panigrahi reiterated a Buy on Intuit Inc (NASDAQ: 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

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