Investing.com -- Intuit Inc was upgraded to Buy from Neutral by Rothschild & Co Redburn, which said the company’s core software products are among the most resilient to disruption from artificial intelligence.

The brokerage raised its target price to $700 from $670 and said the shares offer about 46% potential upside.

Redburn said Intuit’s main applications, including QuickBooks and TurboTax, benefit from deep data sets, complex regulatory rules and strong network effects that would be difficult for AI-driven competitors to replicate. Those advantages, the analysts said, give the company pricing power and support steady growth.

The brokerage expects Intuit to deliver about 13% annual revenue growth and roughly 15% annual free cash flow growth over the next five years.

Redburn’s view comes as investors reassess enterprise software valuations amid concerns that new AI tools could disrupt traditional applications. The firm said valuations across the sector have fallen to historically low levels as markets attempt to price that risk.

Analysts argued that while AI could create short-term pressure on pricing, many established software companies retain strong competitive advantages because of the data and business logic embedded in their systems.

In Intuit’s case, the brokerage said its products rely on complex regulatory frameworks, deep domain knowledge and long-standing customer relationships, which limit the risk that new AI tools could easily replace them.

Redburn added that companies with unique data sets and complex operational logic are better positioned in what it called an emerging “intelligence layer” being built by frontier AI developers on top of existing enterprise software.

The brokerage also identified SAP SE and ServiceNow as companies with strong protection against AI disruption. It said those vendors benefit from deep enterprise data and integrated workflows that would be difficult for outside AI tools to replicate.

Redburn said enterprise software companies could face near-term pressure as AI tools lower the cost of switching between vendors, but it believes share prices have already over-corrected for those risks.