ServiceTitan stock rating reiterated at Overweight by KeyBanc

Investing.com - KeyBanc has reiterated its Overweight rating and $140.00 price target on ServiceTitan (NASDAQ:TTAN), a software platform for commercial service businesses. The target represents significant upside from the current price of $110.45, with analyst consensus remaining bullish at 1.75 (Strong Buy). According to InvestingPro data, 11 analysts have recently revised their earnings estimates upward for the upcoming period.

The reiteration follows investor meetings KeyBanc hosted with ServiceTitan CFO Dave Sherry and IR Jason Rechel this week, where discussions centered on the company’s commercial opportunity, margin expansion, entry into new trades, private equity, and weather impacts.

KeyBanc analyst Jason Celino described ServiceTitan as "one of our favorite ideas" in his research note following the meetings.

The firm believes several upcoming product catalysts could help ServiceTitan unlock broader commercial opportunities in its target markets.

These product developments could potentially drive growth upside and lead to further multiple expansion for the company’s stock, according to KeyBanc’s analysis.

In other recent news, ServiceTitan has garnered attention from multiple analyst firms with varied perspectives on its stock. TD Cowen raised its price target for ServiceTitan to $145, citing a 27% increase in first-quarter revenue, surpassing the upper guidance estimate. The firm attributes this growth to strong subscription revenues and increased usage metrics, highlighting the launch of four large commercial accounts as a positive indicator for the company. Meanwhile, Loop Capital maintained a Hold rating with a $100 price target, noting steady growth in jobs processed on ServiceTitan’s platform and stable average ticket prices. The firm emphasized the benefits of warmer weather and industry consolidation as factors supporting ServiceTitan’s business.

William Blair reiterated an Outperform rating, expressing a positive outlook on ServiceTitan’s growth potential due to its end-to-end platform and expanding customer base. They believe the company’s estimates might be conservative, suggesting a premium valuation is justified. Truist Securities also maintained a Buy rating with a $120 price target, following discussions about ServiceTitan’s strategic initiatives and operational efficiency. The firm is confident in the company’s potential for robust revenue growth and profitability.

Overall, analysts have highlighted ServiceTitan’s strong market position, growth opportunities, and strategic efforts as recent developments that could impact the company’s future performance.

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