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Investing.com - Piper Sandler has raised its price target on ServiceTitan (NASDAQ:TTAN) to $150.00 from $125.00 while maintaining an Overweight rating on the stock. Currently trading at $115.92, the company has seen 11 analysts revise their earnings estimates upward for the upcoming period, according to InvestingPro data.
The investment firm cited multiple factors for the increased target, including expectations for strong second-quarter performance due to hot summer seasonality. ServiceTitan’s variable usage revenue mix of 22-23% gives analysts an upward bias to Q2 estimates. The company has demonstrated strong momentum with 28% revenue growth and maintains a healthy 66% gross margin, though InvestingPro analysis indicates the stock is currently trading above its Fair Value.
Piper Sandler also expressed increasing confidence in secular tailwinds affecting ServiceTitan, specifically pointing to higher attach-rates and climate change as positive factors for the company’s growth trajectory.
The firm highlighted ServiceTitan’s "underappreciated AI platform potential" as a key driver for the higher valuation, noting the technology could drive end-to-end automations via higher-priced Pro SKUs.
Piper Sandler also identified several upcoming HVAC earnings reports as potential catalysts to watch, including Lennox (NYSE:LII) on July 23, Comfort Systems (NYSE:FIX) on July 25, Carrier (NYSE:CARR) and Johnson Controls (NYSE:JCI) on July 29, and Trane Technologies (NYSE:TT) and Watsco (NYSE:WSO) on July 30.
In other recent news, ServiceTitan has been the focus of several analyst reviews, with key firms reiterating their ratings. KeyBanc maintained its Overweight rating with a price target of $140, following discussions with the company’s CFO and Investor Relations team. These discussions highlighted ServiceTitan’s commercial opportunities and potential for margin expansion. Similarly, TD Cowen reaffirmed its Buy rating and set a price target of $145, noting positive factors for the company’s second-quarter gross transaction value, including regulatory changes and hot weather conditions. Loop Capital also reiterated its Hold rating with a $100 price target, emphasizing ServiceTitan’s strong market position and growth prospects despite economic uncertainty.
William Blair expressed confidence by maintaining an Outperform rating, focusing on ServiceTitan’s platform capabilities that enhance revenue growth and operational efficiency. Truist Securities continued its Buy rating with a $120 price target after reviewing the company’s first-quarter results and discussing its strategies for growth in the roofing sector and consumer financing. These recent developments underline the continued interest and varied perspectives from analysts on ServiceTitan’s market performance and growth potential.
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