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On Thursday, JPMorgan analysts reiterated their Overweight rating on Tyler Tech stock (NYSE: TYL), maintaining a price target of $740.00. This aligns with the broader Wall Street sentiment, as InvestingPro data shows 13 analysts have recently revised their earnings expectations upward, with price targets ranging from $570 to $775. The decision reflects the analysts’ continued confidence in the company’s business model and growth prospects.
Tyler Tech, known primarily as a software provider for government clients, generates a significant portion of its revenue from transaction-based activities. This includes services such as payment processing, point-of-sale cashiering, and various disbursements. These activities account for about half of the company’s subscription revenue and one-third of its total revenue of $2.19 billion. According to InvestingPro, the company maintains a healthy gross profit margin of 44.7% and has demonstrated solid revenue growth of nearly 10% over the last twelve months.
The analysts highlighted that Tyler Tech’s transformation into a payment facilitator in 2021, following a major acquisition, has strengthened its integration in customer payment and disbursement processes. This strategic move has allowed the company to benefit from improved payment economics and deeper customer relationships. The company’s financial health score is rated as GOOD by InvestingPro, with particularly strong marks in growth and profitability metrics.
Currently, Tyler Tech’s transaction business boasts a revenue run-rate of $0.8 billion, which the analysts noted is often overlooked. They believe this aspect of the business could present potential upside risks to the company’s forecasts, reinforcing their positive stance on the stock.
JPMorgan’s assessment underscores the analysts’ conviction that Tyler Tech’s payment operations could enhance its financial performance, supporting their Overweight rating on the stock.
In other recent news, Tyler Technologies (NYSE:TYL) reported strong 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. Following these results, DA Davidson maintained a Neutral rating on Tyler Technologies, noting that both revenues and earnings significantly surpassed their projections. The company has revised its revenue guidance upward, expecting a year-over-year growth of 8%-10% in total revenue, reaching between $2.31 billion to $2.35 billion.
Piper Sandler reaffirmed an Overweight rating with a $708 price target, highlighting Tyler Technologies’ transition to cloud-based operations as a key growth driver. The firm also emphasized the company’s prospects for monetizing artificial intelligence and its strong financial position, including a plan to retire $600 million of convertible debt next year. Meanwhile, Needham maintained a Buy rating with a $750 price target, expressing confidence in Tyler Technologies’ market position and anticipating substantial contract wins in the second half of 2025.
Cantor Fitzgerald initiated coverage on Tyler Technologies with a Neutral rating and a price target of $60. The analysts noted the company’s opportunity for growth through cloud migrations and technological modernization. Tyler Technologies’ focus on cloud transitions and AI initiatives continues to contribute to its strong performance, as evidenced by a 10.3% increase in total revenues compared to the previous year.
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