On Monday, Truist Securities began coverage on shares of ServiceTitan (NASDAQ:TTAN), assigning a Buy rating and setting a price target of $120, representing about 13% upside from the current price of $105.79. The stock is trading near its 52-week high of $112, and according to InvestingPro analysis, current technical indicators suggest the stock is in overbought territory.
The firm highlighted ServiceTitan's role as a leading provider of comprehensive workflow solutions for residential and commercial trade industries, including plumbing, electrical, HVAC, and more. The platform is designed to assist trade businesses in various operations, from lead generation to payment processing and back-office management.
ServiceTitan's recent financial performance was noted, with the company achieving $685 million in trailing twelve-month revenue, marking a 24% year-over-year increase. The company maintains a healthy gross margin of 65.37%, though InvestingPro data reveals it's not yet profitable, with a net loss of $234 million in the last twelve months.
Moreover, its gross transaction volume reached $62 billion, showing a 23% increase from the previous year. The firm also emphasized ServiceTitan's exceptional customer retention rates. Discover more key metrics and insights with an InvestingPro subscription.
Truist Securities expressed confidence in ServiceTitan's strategic approach to growth, suggesting that it is well-positioned for long-term compounding growth, profitability, and free cash flow. The analyst's statement underscored the company's significant scale and the critical nature of its services to the trades industry.
ServiceTitan's platform is recognized for enabling businesses in the trades sector to streamline their operations, which is reflected in the company's strong financial metrics and market position. With the initiation of coverage and the setting of a high price target, Truist Securities signals its positive outlook on ServiceTitan's future performance in the market.
In other recent news, ServiceTitan has been the focus of several investment firms. The company has been initiated with a Buy rating by Needham and Stifel, an Overweight rating by Piper Sandler and KeyBanc Capital Markets, and a Neutral rating by Goldman Sachs. Analysts from Needham have set a price target of $125, based on their fiscal year 2026 revenue estimate for ServiceTitan, while Piper Sandler and KeyBanc Capital Markets have set a similar price target.
ServiceTitan's recent trade expansions have been noted for their potential to drive profitability. The company has also been recognized for its strength in the Electrical trade and its expansion into the Commercial sector, complementing its robust presence in the HVAC and Plumbing residential sectors.
The company's recent financial results revealed a revenue generation of $685 million with a gross margin of 65%, although it reported a net loss of $234 million in the last twelve months. However, ServiceTitan's Annual Recurring Revenue (ARR) is forecasted to surpass the $1 billion mark in the upcoming year. These are recent developments that illustrate ServiceTitan's potential in the evolving vertical software market.
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