Crispr Therapeutics shares tumble after significant earnings miss
On Tuesday, Cantor Fitzgerald analysts initiated coverage on Tyler Tech stock (NYSE: TYL) with a Neutral rating and set a price target of $60.00. The analysts based this evaluation on the company’s shares trading at a multiple of 10 times their estimated revenue for the calendar year 2026, compared to the current enterprise value to 2026 revenue multiple of 9.5 times. According to InvestingPro data, the stock currently trades at high valuation multiples across various metrics, with a P/E ratio of 78.7 and an EV/EBITDA of 56.2.
Tyler Tech is recognized as a market leader in the public sector, with a significant opportunity for growth through cloud migrations and technological modernization. Despite being a leader, only about 40% of local jurisdictions currently operate on modern technology and cloud-enabled software. The analysts expect Tyler Tech to continue gaining market share, projecting an annual top-line growth of at least 10% over the coming years. This outlook aligns with the company’s recent performance, showing a 10% revenue growth in the last twelve months to $2.19 billion, and 13 analysts have revised their earnings estimates upward for the upcoming period.Want deeper insights? InvestingPro subscribers have access to over 30 additional premium insights and financial metrics for Tyler Tech, including detailed valuation analysis and growth projections.
The company’s free cash flow conversion is improving and is positioned in the upper quartile of software companies in today’s market. Tyler Tech’s 2030 plan aims to enhance efficiencies across its model and cloud infrastructure, with a goal of generating more than $1 billion in free cash flow by 2030. Current InvestingPro data shows strong financial health with a levered free cash flow of $593 million and moderate debt levels, maintaining a healthy debt-to-equity ratio of 0.18.
Tyler Tech’s strong balance sheet and cash flow position it well for mergers and acquisitions, which are seen as key growth drivers. The company has a history of successful tuck-in acquisitions, and this strategy is expected to continue, contributing additional growth annually. The company maintains a solid financial foundation with a gross profit margin of 44.7% and an Altman Z-Score of 12.28, indicating strong financial stability.
In other recent news, Tyler Technologies (NYSE:TYL) reported impressive first-quarter 2025 earnings, with an earnings per share (EPS) of $2.78, surpassing the forecast of $2.55. The company’s revenue also exceeded expectations, reaching $565.2 million compared to the projected $556.82 million, marking a 10.3% year-over-year growth driven by strong SaaS and subscription growth. Analysts at DA Davidson maintained a Neutral rating on Tyler Technologies, noting that the company’s first-quarter results showed revenues slightly surpassing projections and earnings significantly above expectations. They highlighted Tyler Technologies’ revised revenue guidance, which now anticipates a year-over-year growth of 8%-10%, reaching between $2.31 billion to $2.35 billion, and a 16%-19% increase in Non-GAAP EPS.
Meanwhile, Piper Sandler reaffirmed a positive outlook on Tyler Technologies with an Overweight rating and a price target of $708.00, emphasizing the company’s long-term growth potential and achievements in transitioning to cloud-based operations. Needham also maintained its Buy rating for Tyler Technologies, with a steady price target of $750.00, following an investor session that reinforced confidence in the company’s prospects. The session highlighted Tyler’s strategic direction concerning artificial intelligence (AI) products and organizational changes aimed at enhancing service delivery.
Tyler Technologies’ focus on cloud transitions and AI initiatives continues to pay off, contributing to its robust performance and positive outlook for the year. The company projects total revenue between $2.310 billion and $2.350 billion for the full year 2025, with expectations for Non-GAAP diluted EPS to range from $11.05 to $11.35. These recent developments indicate a strong financial position and optimistic growth trajectory for Tyler Technologies.
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