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Investing.com - TD Cowen has raised its price target on ServiceTitan (NASDAQ:TTAN) to $150.00 from $145.00 while maintaining a Buy rating on the stock. According to InvestingPro data, analyst targets for TTAN range from $109 to $155, with 11 analysts recently revising their earnings estimates upward for the upcoming period.
The firm cited ServiceTitan’s revenue growth of 25%, which exceeded the high end of the company’s guidance of 19%. This growth was driven by both subscription revenues and usage/GTV (Gross Transaction Volume). InvestingPro data shows even stronger performance, with actual revenue growth reaching 28% over the last twelve months, supported by a healthy gross profit margin of 66%.
TD Cowen highlighted the Roto-Rooter win as evidence of ServiceTitan’s growing enterprise strength across both residential and commercial markets. The company’s focus on construction is unlocking the commercial market, which TD Cowen identifies as a key growth driver.
ServiceTitan has raised its full-year guidance from 19% to 22% at the high end, which TD Cowen believes remains "very conservative." The stock rose 10% in after-hours trading following the announcement.
TD Cowen maintains that ServiceTitan remains one of its top picks with several durable growth drivers, including enterprise customers, commercial trades, Pro products, and roofing. The firm notes the stock is trading at approximately 10x EV/CY26E Sales in after-hours, in line with vertical comparables.
In other recent news, ServiceTitan reported strong second-quarter fiscal 2026 results, exceeding both top and bottom-line expectations. The company achieved a total revenue of $242 million, marking a 25% year-over-year growth, surpassing revenue expectations by $13 million according to Piper Sandler. Additionally, ServiceTitan’s platform revenue increased by 26%, with non-GAAP operating margins improving by over 500 basis points year-over-year, as noted by Canaccord Genuity. The company’s gross margins exceeded 74% for the first time, contributing to its first double-digit operating margin quarter at 12.1%, according to Needham.
Analysts have responded positively to these results. BMO Capital maintained its Outperform rating with a price target of $129, highlighting the significant top and bottom-line beats since the company’s IPO. Piper Sandler raised its price target to $155, maintaining an Overweight rating, while KeyBanc and Needham both reiterated their Overweight and Buy ratings, respectively, with price targets of $140. Canaccord Genuity also reiterated its Buy rating with a $130 price target. These developments reflect a strong consensus among analysts regarding ServiceTitan’s financial performance and future potential.
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