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On Friday, Piper Sandler analysts reiterated their Overweight rating on ServiceTitan stock (NASDAQ: TTAN), maintaining a price target of $125.00. The company, currently valued at $10.26 billion, appears overvalued according to InvestingPro Fair Value metrics. The decision follows strong performance metrics reported by the company, which is recognized as a leader in specialty vertical applications across trades such as HVAC, plumbing, electrical, and roofing.
ServiceTitan demonstrated a 27% year-over-year platform growth, surpassing the consensus of 23%. Recent financial data from InvestingPro shows revenue growth of 25.78% and an impressive gross profit margin of 66.59%. This performance underscores the company’s momentum in commercial trades, with minimal impact from tariff and policy uncertainties. The company’s operating margin improved significantly to 7.5%, compared to 1.9% in the previous year, contributing to a $0.07 earnings per share beat relative to Piper Sandler’s estimates.
The analysts remain optimistic about ServiceTitan’s future, citing its defensive attributes and potential for sustained profit growth of over 20%. While InvestingPro data indicates the company isn’t currently profitable, analysts predict profitability this year. The company is expected to achieve 15-25% top-line growth alongside improving margins, making it a core growth holding. InvestingPro subscribers have access to 8 additional key insights about ServiceTitan’s financial health and growth prospects.
ServiceTitan’s focus on the U.S. market, combined with its break-fix nature in the trades industry, positions it well for continued success. With a strong current ratio of 4.82, the company maintains solid liquidity to support its operations. Piper Sandler suggests adding to positions on any weakness, underscoring their confidence in the stock’s prospects.
In other recent news, ServiceTitan reported robust financial results for the first quarter of 2025, with total revenue reaching $215.7 million, marking a 27% increase year-over-year. Subscription revenue saw a significant rise of 29%, contributing to the company’s solid performance. ServiceTitan’s strategic focus on product innovation and market expansion continues to drive growth, as evidenced by their increased full-year guidance, which surpassed market expectations. The company also provided guidance for the second fiscal quarter that exceeded market predictions, indicating strong business momentum.
Several analyst firms have weighed in on ServiceTitan’s recent performance. KeyBanc maintained an Overweight rating with a price target of $140, while Needham reiterated a Buy rating, also with a $140 target, citing the company’s impressive financial results and increased revenue guidance. Goldman Sachs, however, maintained a Neutral rating with a $110 price target, acknowledging the strong quarterly results but expressing caution regarding consistent topline execution.
ServiceTitan’s expansion into new trades, such as roofing and commercial markets, has contributed to its revenue growth. The company also reported progress in its Pro Products segment and secured a significant contract with a large residential roofing business. Loop Capital raised its price target for ServiceTitan to $100, noting the company’s successful product-led growth strategy amidst a rapidly consolidating market. These developments reflect ServiceTitan’s ongoing efforts to capture a larger share of the market and expand its total addressable market.
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