KeyBanc maintains overweight rating on ServiceTitan stock

Published 06/06/2025, 13:10
KeyBanc maintains overweight rating on ServiceTitan stock

On Friday, KeyBanc analysts reaffirmed their Overweight rating for ServiceTitan stock (NASDAQ: TTAN) with a price target of $140.00, representing ~22% upside from the current price of $114.55. The decision follows the company’s impressive financial performance in the first fiscal quarter. According to InvestingPro data, the company commands a market capitalization of $10.26 billion.

ServiceTitan reported strong first-quarter results, surpassing expectations, with a robust gross profit margin of 66.59%. While not currently profitable, InvestingPro analysis indicates analysts expect the company to achieve profitability this year. The company also provided guidance for the second fiscal quarter that exceeded market predictions. Additionally, ServiceTitan increased its full-year guidance beyond the quarterly beat.

The analysts highlighted that while the top-line beat was slightly smaller than the previous quarter, the performance was consistent when excluding a $2 million one-time weather-related benefit from the fourth quarter. The company maintains impressive revenue growth of 25.78% over the last twelve months. Get access to 6 more key insights about ServiceTitan with an InvestingPro subscription.

KeyBanc analysts emphasized that ServiceTitan should remain a core holding for investors interested in software-as-a-service (SaaS) companies. They suggested that any decline in the stock’s price could present a buying opportunity, with analyst targets ranging from $90 to $145.

In other recent news, ServiceTitan reported a significant 27% increase in revenue for the first quarter of 2025, reaching $215.7 million. Subscription revenue saw a notable rise of 29%, amounting to $162.7 million, while usage revenue increased by 22%. The company’s improved operating income, with a margin of 7.5%, reflects its strategic focus on product innovation and market expansion. Following these results, Needham analysts reiterated a Buy rating for ServiceTitan, citing strong financial performance and increased revenue guidance for the full fiscal year 2026. Meanwhile, Goldman Sachs maintained a Neutral rating, acknowledging the company’s solid execution but expressing caution over a slowdown in subscription and usage revenue growth. ServiceTitan’s recent strategic moves include launching four major strategic accounts and securing a significant contract with a large residential roofing business in the U.S. The company also continues to expand its market presence through partnerships with firms like GAF and EagleView, indicating potential growth in the vertical SaaS market. These developments highlight ServiceTitan’s ongoing efforts to strengthen its market position and expand its total addressable market.

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