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On Friday, TD Cowen analysts raised the price target for ServiceTitan stock (NASDAQ: TTAN) to $145 from $140, while maintaining a Buy rating. Currently trading at $104.21, the company has demonstrated robust growth with first-quarter revenue growth of 27%, surpassing the upper guidance estimate of 23%. The company’s performance was driven by strong subscription revenues and increased usage metrics, contributing to its impressive 25.78% revenue growth over the last twelve months. InvestingPro data shows the company maintains a healthy gross profit margin of 66.59%.
The analysts highlighted that ServiceTitan launched four large commercial accounts, demonstrating the company’s success in the commercial sector. They noted that the full-year guidance was increased from 17% to 19% at the high end, and they consider this forecast to be conservative. The analysts anticipate strong performance in the second quarter, which is typically a robust period for the company. With a strong current ratio of 4.82, InvestingPro analysis reveals the company has ample liquidity to support its growth initiatives. For deeper insights into ServiceTitan’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
ServiceTitan remains a top pick for TD Cowen, with several durable growth drivers identified in their April analysis. The analysts expect the expiration of the IPO lockup on June 13 to be well absorbed by the market. They see the current trading valuation of approximately 9.5 times EV/CY26E sales as attractive compared to vertical peers trading at around 11 times.
The analysts reiterated their positive outlook on ServiceTitan, citing the company’s strong growth trajectory and attractive valuation. They raised the price target based on higher estimates, now valuing the company at roughly 13 times EV/CY26E sales.
In other recent news, ServiceTitan Inc. reported a strong first-quarter revenue of $215.69 million, marking a 27% increase year-over-year. However, the company also reported a GAAP net loss from operations of $49.5 million, which, although an improvement from the previous year’s loss of $53.4 million, seemed to overshadow the positive revenue performance. ServiceTitan’s adjusted income from operations increased significantly to $16.2 million from $3.3 million in the prior-year period. The company’s gross transaction volume grew by 22% year-over-year, reaching $17.7 billion. Looking forward, ServiceTitan has projected second-quarter revenue between $228 million and $230 million, exceeding the consensus estimate of $226.7 million. For the fiscal year 2026, the company anticipates revenue in the range of $910 million to $920 million, surpassing analyst expectations of $903.1 million. Despite these optimistic projections, the market’s reaction indicates ongoing investor concerns about the company’s path to profitability. ServiceTitan maintained a net dollar retention rate of over 110%, reflecting strong customer loyalty.
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