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On Wednesday, TD Cowen maintained a positive outlook on ServiceTitan (NASDAQ:TTAN) by increasing the price target from $120.00 to $140.00 while keeping a Buy rating on the company’s shares. Currently trading at $125.80 and near its 52-week high of $131.33, the stock has demonstrated strong momentum with a 25.46% gain over the past six months. The adjustment comes as analyst Andrew Sherman anticipates a strong start to the year for the software provider, which is scheduled to report its financial results on June 5, 2025. According to InvestingPro, the company’s current market valuation suggests it may be trading above its Fair Value.
Sherman’s projection aligns with the higher end of ServiceTitan’s guidance, forecasting a 23% growth in total revenue. This estimate appears achievable given the company’s impressive 25.64% revenue growth over the last twelve months, as reported by InvestingPro. This estimate is in step with the company’s optimistic full-year guidance, which suggests a 17% increase at the high end. Sherman believes that ServiceTitan is poised for a robust quarterly performance that could lead to an upward revision of its yearly forecasts.
The analyst’s confidence in ServiceTitan is partly inspired by the company’s ability to significantly outperform, attributed to the durability of its end-markets. Sherman considers ServiceTitan to be one of the firm’s top investment ideas, especially ahead of what is traditionally a seasonally strong second quarter. This bullish stance is further reinforced by recent improvements in macroeconomic sentiment and a better-than-expected earnings report from Home Depot (NYSE:HD), which bodes well for the home services industry.
Furthermore, Sherman points to the upcoming lockup expiration on June 13, 2025, as a potential catalyst for the stock. He predicts that any additional supply of shares hitting the market will be readily absorbed by investors, contributing to the positive momentum of ServiceTitan’s stock price.
In summary, TD Cowen expects ServiceTitan to continue its upward trajectory following another anticipated strong quarterly report and subsequent guidance raise. While the company maintains a healthy gross profit margin of 65% and operates with moderate debt levels, investors should note its current Price-to-Book ratio of 7.99x suggests a premium valuation. The firm’s reiteration of a Buy rating and a raised price target to $140 reflects a valuation of 13 times the company’s projected enterprise value to CY26E sales. For deeper insights into ServiceTitan’s valuation metrics and growth potential, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, ServiceTitan has reported strong fourth-quarter results, surpassing estimates in revenue, profits, and cash flow, as noted by Truist Securities. The company saw accelerated growth in its top line and Gross Transaction (JO:NTUJ) Value, with notable progress in the commercial and roofing sectors. Truist maintains a Buy rating with a $120 price target, citing ServiceTitan’s effective execution and robust sales activities. TD Cowen has also initiated coverage with a Buy rating, setting a $120 target, emphasizing the company’s dominant market position and potential for exceeding conservative financial estimates. Meanwhile, Needham has raised its price target for ServiceTitan to $140, highlighting customer satisfaction and the company’s ability to deliver operational efficiencies. Piper Sandler maintains an Overweight rating with a $125 target, noting the company’s resilience to economic fluctuations and its strong market fundamentals. These developments underscore the confidence various analyst firms have in ServiceTitan’s growth trajectory and market strategy.
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