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On Friday, Stifel analysts revised their price target for ServiceTitan (NASDAQ:TTAN) shares, lowering it to $110 from the previous $120 while keeping a Buy rating on the stock. Currently trading at $87.98, the company maintains a market capitalization of $7.4 billion. Parker Lane from Stifel provided insights into the company’s recent performance and future plans. ServiceTitan’s reported results were seen as a positive development in establishing a consistent operational pattern for the company as a public entity. The results exceeded expectations, and the guidance provided was set higher than what analysts had anticipated. According to InvestingPro data, analyst price targets range from $104 to $125, suggesting potential upside from current levels.
The fourth quarter saw some favorable conditions for ServiceTitan, such as beneficial weather impacting Gross Transaction (JO:TCPJ) Value (GTV) and strong revenue linearity. The company generated revenue of $724.36 million in the last twelve months, maintaining a healthy gross margin of 65.46%. The analysts noted that the quarter-over-quarter acceleration was significant, even when disregarding these advantageous circumstances. ServiceTitan has announced four strategic initiatives for the fiscal year 2026, which are aimed at sustaining the company’s growth momentum. These initiatives include expanding enterprise capabilities, increasing adoption among professionals, penetrating deeper into the commercial market, and continuing growth in the Roofing sector. InvestingPro analysis reveals the company operates with a moderate debt level and maintains strong liquidity with a current ratio of 1.8.
Stifel’s analysis highlighted a particular emphasis on the commercial aspect during ServiceTitan’s call, which had not been as pronounced in previous discussions. With the commercial segment representing 43% of ServiceTitan’s Total (EPA:TTEF) Addressable Market (TAM) but only about one-third of its GTV, analysts believe that the company is well-positioned to delve further into this area. The team at ServiceTitan is considered to be well-suited for this expansion into the commercial sector. Despite the reduction in the price target, Stifel reaffirmed its Buy rating, indicating a continued positive outlook on ServiceTitan’s stock. For deeper insights into ServiceTitan’s financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, ServiceTitan has reported a strong financial performance in its latest earnings release. The company saw a 29% year-over-year increase in fourth-quarter revenue, reaching $209.3 million, with Gross Transaction Volume (GTV) also rising by 26% to $17 billion. This growth was driven by a significant boost in subscription revenue, which increased by 31%. The company’s guidance for fiscal year 2026 projects revenue between $895 million and $950 million, with operating income expected to be in the range of $48 million to $53 million.
Analyst firms have responded with varying perspectives on ServiceTitan’s stock. KeyBanc Capital Markets maintained an Overweight rating with a $120 price target, expressing confidence in the company’s resilience against economic uncertainties and its positive future outlook. Conversely, Loop Capital adjusted its price target to $90 from $105, while keeping a Hold rating, acknowledging the company’s strong performance but reflecting recent market conditions and multiple compressions. Needham analysts reiterated a Buy rating with a $125 price target, highlighting the company’s strategic focus on market expansion and product innovation.
ServiceTitan’s management has emphasized the company’s strategic initiatives aimed at sustaining growth, particularly in expanding its commercial market reach and enhancing its product offerings. The company is focusing on increasing adoption of its Pro modules and expanding into new markets, including roofing. Despite macroeconomic concerns, ServiceTitan has not observed any negative impact on its operations, maintaining strong customer retention and revenue growth.
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