ServiceTitan stock rating reiterated at Outperform by William Blair

Published 30/06/2025, 14:22
ServiceTitan stock rating reiterated at Outperform by William Blair

Investing.com - William Blair analyst Dylan Becker has reiterated an Outperform rating on ServiceTitan (NASDAQ:TTAN), following investor meetings with the company’s Vice President of Investor Relations Jason Rechel last week. The company currently maintains a strong Buy consensus among analysts, with InvestingPro data showing 11 analysts recently revising their earnings estimates upward for the upcoming period.

The meetings highlighted ServiceTitan’s end-to-end platform, which provides customers with both revenue growth acceleration and operational efficiency improvements. This strategy appears to be working, with the company achieving 28% revenue growth and maintaining a robust 66.26% gross profit margin in the last twelve months. Discussions also covered opportunities for expanding wallet share within the existing customer base while adding more Gross Transaction (JO:NTUJ) Value to the platform.

William Blair noted the company’s increasing penetration of commercial customers, supported by ongoing product innovation, alongside ServiceTitan’s continued focus on driving operational leverage as the business scales.

The investment firm expressed an "incrementally positive" outlook on ServiceTitan’s position in digitizing the trades ecosystem, which supports a "sustainable runway of growth with ongoing leverage." Currently, shares trade at approximately 10 times William Blair’s calendar 2026 revenue estimate, in line with peers.

William Blair believes its estimates "are likely to prove conservative," suggesting a premium valuation is warranted due to ServiceTitan’s "favorable competitive positioning, large and growing market opportunity, and expanding financial profile." While the company currently operates at a loss, InvestingPro analysis indicates potential profitability this year. For deeper insights into ServiceTitan’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, ServiceTitan reported a first-quarter revenue of $215.69 million, a 27% year-over-year increase, surpassing the upper guidance estimate of 23%. Despite this revenue growth, the company experienced a GAAP net loss from operations of $49.5 million, although this was an improvement from the previous year’s loss. The company’s gross transaction volume also grew 22% year-over-year to $17.7 billion. ServiceTitan provided optimistic guidance for the second quarter, projecting revenue between $228 million and $230 million, which exceeds the consensus estimate. For the full fiscal year 2026, the company expects revenue between $910 million and $920 million, above the analyst expectations of $903.1 million.

Analyst opinions on ServiceTitan remain positive. Truist Securities reiterated a Buy rating with a price target of $120, citing confidence in the company’s potential for revenue growth and profitability. Meanwhile, TD Cowen raised its price target to $145 from $140, maintaining a Buy rating. They highlighted ServiceTitan’s strong subscription revenues and successful launch of four large commercial accounts. Despite the market’s concerns about profitability, analysts from both firms express optimism about the company’s future growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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