Canaccord Genuity reiterates Buy rating on ServiceTitan stock

Published 05/09/2025, 12:12
Canaccord Genuity reiterates Buy rating on ServiceTitan stock

Investing.com - Canaccord Genuity has reiterated its Buy rating on ServiceTitan (NASDAQ:TTAN) stock, maintaining a price target of $130.00. The stock, currently trading at $100.31, has broad analyst support with targets ranging from $109 to $155. According to InvestingPro data, 11 analysts have recently revised their earnings estimates upward for the upcoming period.

ServiceTitan reported strong quarterly results with total revenue growing by 25% and platform revenue increasing by 26%. The company delivered 12.1% non-GAAP operating margins, representing an improvement of more than 500 basis points year-over-year. This performance aligns with the company’s impressive 28% year-over-year revenue growth and healthy gross margin of 66.26% over the last twelve months.

Gross Transaction Value (GTV) for the quarter reached $22.9 billion, up 19% compared to the same period last year. The total effective platform take rate on GTV was 1.02%, an increase of 6 basis points year-over-year, indicating healthy Pro product attachment momentum.

The company’s customer acquisition cost (CAC) payback period improved to just under 20 months, reaching the best levels observed by Canaccord Genuity. This metric reflects ServiceTitan’s improving efficiency in acquiring new customers.

Management indicated they expect to outperform the firm’s stated 25% incremental margin target this year while maintaining discipline around this metric going forward. The strong performance was attributed to both robust usage revenue against a challenging comparison period and accelerated growth from new customers. For deeper insights into ServiceTitan’s financial health and growth prospects, including exclusive ProTips and comprehensive valuation metrics, visit InvestingPro.

In other recent news, ServiceTitan reported strong financial results for the second quarter of 2025, with total revenue growth of 25.5% year-over-year. Subscription revenue increased by 26.9%, surpassing Needham’s estimates by $7 million. The company’s gross margins exceeded 74% for the first time, resulting in a double-digit operating margin of 12.1%. Following these results, Needham reiterated a Buy rating with a price target of $140.00. Stifel also raised its price target on ServiceTitan to $135.00 from $125.00, maintaining a Buy rating. This decision was influenced by ServiceTitan’s better-than-expected performance, particularly in Gross Transaction Value driven by strong results in Commercial and non-HVAC trades in Residential segments. The earnings call further highlighted strategic initiatives and innovative product launches that are expected to support future growth.

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