Tyler Tech stock holds steady with Neutral rating by DA Davidson

Published 24/04/2025, 17:02
Tyler Tech stock holds steady with Neutral rating by DA Davidson

On Thursday, DA Davidson maintained a Neutral rating on Tyler Technologies Inc . (NYSE:TYL), a $23.9 billion market cap software company, with a consistent price target of $595.00. According to InvestingPro data, the stock is currently trading at premium valuations, with a P/E ratio of 90.5x and an EV/EBITDA multiple of 57.4x. Analysts at the firm highlighted Tyler’s first-quarter results, which showed revenues slightly surpassing their projections and earnings significantly above expectations. The company’s management has revised their revenue guidance upward and increased the midpoint of their Non-GAAP EPS guidance by nearly 2%. The updated forecast includes a year-over-year growth of 8%-10% in total revenue, reaching between $2.31 billion to $2.35 billion, and a 16%-19% increase in Non-GAAP EPS, with expectations set between $11.05 and $11.35. InvestingPro analysis shows the company maintains strong financial health with a moderate debt level and sufficient cash flows to cover interest payments.

The financial results reported by Tyler Technologies for the first quarter indicated a performance that was slightly better than what DA Davidson analysts had anticipated. The company’s revenue exceeded the forecast by a narrow margin, while earnings measures were considerably higher than predicted. This positive outcome has led to an adjustment in the company’s financial outlook for the year.

The updated guidance provided by Tyler Technologies’ management reflects an optimistic view of the company’s growth trajectory. The revised figures suggest that Tyler is on track to achieve a solid increase in both total revenue and Non-GAAP EPS for the year. The projected growth rates underscore the company’s financial health and the potential for continued progress in its operations.

Tyler Technologies’ stock price has remained stable following the announcement, with the market absorbing the news of the company’s first-quarter performance and updated guidance. Investors appear to be taking a measured approach, considering the Neutral rating and unchanged price target set by DA Davidson.

The company’s focus on delivering robust financial results is evident in the revised guidance figures, which signal confidence from Tyler’s management in the company’s ability to grow and generate shareholder value. As the year progresses, market watchers and investors will likely keep a close eye on Tyler Technologies’ performance to see if it aligns with the updated expectations. InvestingPro subscribers can access 12 additional key insights about Tyler Technologies, including detailed valuation metrics and growth projections, through the comprehensive Pro Research Report available exclusively on the platform.

In other recent news, Tyler Technologies reported a strong start to 2025, with first-quarter earnings surpassing expectations. The company achieved an earnings per share of $2.78, exceeding the forecast of $2.55, while revenue reached $565.2 million, outpacing the projected $556.82 million. This performance was driven by significant growth in subscription revenues, which increased by 19.7%, and SaaS revenues, which rose by 21% to $180.1 million. Tyler Technologies continues to focus on expanding its cloud and AI initiatives, contributing to its robust financial results. The company has projected total revenue for the full year 2025 to be between $2.310 billion and $2.350 billion, representing 9% organic growth. Additionally, Tyler Technologies expects non-GAAP diluted EPS to range from $11.05 to $11.35. The company remains optimistic about its pipeline and future deal closures, despite some timing issues related to ARPA funds affecting short-term bookings.

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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