BTIG Research Reiterates "Buy" Rating for ServiceTitan (NASDAQ:TTAN)

Key Points

• BTIG Research reiterated its “Buy” rating on ServiceTitan and set a $110 price target, implying 34.84% potential upside. Analysts overall maintain a “Moderate Buy” consensus with an average target of $107.33.
• ServiceTitan exceeded quarterly expectations, reporting adjusted EPS of $0.40 versus the $0.35 consensus and revenue of $292.76 million, up 20.9% year over year.
• Despite the earnings beat, fiscal Q3 revenue guidance of $285 million–$287 million fell slightly below estimates, while a chief revenue officer transition and substantial insider selling added investor concerns.

ServiceTitan (NASDAQ:TTAN - Get Free Report)'s stock had its "buy" rating reiterated by stock analysts at BTIG Research in a research note issued to investors on Wednesday, Benzinga reports. They presently have a $110.00 price target on the stock. BTIG Research's price target would suggest a potential upside of 34.84% from the company's current price.

Several other research analysts also recently commented on TTAN. Evercore set a $90.00 price objective on shares of ServiceTitan in a report on Wednesday. Needham & Company LLC restated a "buy" rating and issued a $100.00 target price on shares of ServiceTitan in a research note on Wednesday. Morgan Stanley upped their price target on ServiceTitan from $118.00 to $124.00 and gave the company an "overweight" rating in a research report on Friday, June 5th. Wells Fargo & Company reissued an "overweight" rating on shares of ServiceTitan in a report on Wednesday. Finally, Robert W. Baird raised their price objective on shares of ServiceTitan from $94.00 to $101.00 and gave the company an "outperform" rating in a research report on Wednesday, August 12th. Fourteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $107.33.

ServiceTitan Stock Performance

Shares of NASDAQ:TTAN opened at $81.58 on Wednesday. The company's 50-day moving average is $84.66 and its 200 day moving average is $72.69. The company has a market capitalization of $7.78 billion, a P/E ratio of -56.26 and a beta of 0.11. ServiceTitan has a fifty-two week low of $54.17 and a fifty-two week high of $119.99.

ServiceTitan (NASDAQ:TTAN - Get Free Report) last issued its earnings results on Tuesday, September 8th. The company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.05. The firm had revenue of $292.76 million for the quarter, compared to analyst estimates of $285.89 million. ServiceTitan had a negative return on equity of 5.59% and a negative net margin of 13.44%.The business's revenue was up 20.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.33 earnings per share. As a group, research analysts predict that ServiceTitan will post -0.54 earnings per share for the current year.

Insiders Place Their Bets

In other news, major shareholder Iconiq Strategic Partners V, L sold 94,415 shares of ServiceTitan stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $63.43, for a total transaction of $5,988,743.45. Following the completion of the sale, the insider owned 443,221 shares in the company, valued at approximately $28,113,508.03. This trade represents a 17.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director William Griffith sold 94,415 shares of the business's stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $63.43, for a total value of $5,988,743.45. Following the transaction, the director directly owned 443,221 shares of the company's stock, valued at $28,113,508.03. The trade was a 17.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 514,837 shares of company stock worth $39,203,222. 39.89% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. lifted its stake in ServiceTitan by 1,005.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 431 shares of the company's stock worth $46,000 after purchasing an additional 392 shares during the last quarter. Sunbelt Securities Inc. increased its position in shares of ServiceTitan by 391.0% during the 4th quarter. Sunbelt Securities Inc. now owns 491 shares of the company's stock valued at $52,000 after purchasing an additional 391 shares during the last quarter. Parallel Advisors LLC raised its holdings in shares of ServiceTitan by 161.7% during the 3rd quarter. Parallel Advisors LLC now owns 526 shares of the company's stock valued at $53,000 after buying an additional 325 shares in the last quarter. Daiwa Securities Group Inc. purchased a new position in shares of ServiceTitan during the fourth quarter worth approximately $68,000. Finally, State of Wyoming purchased a new stake in shares of ServiceTitan in the 1st quarter valued at $48,000.

More ServiceTitan News

Here are the key news stories impacting ServiceTitan this week:

• Positive Sentiment: ServiceTitan reported fiscal Q2 adjusted earnings of $0.40 per share, above the roughly $0.35-$0.36 analyst consensus, while revenue of $292.76 million exceeded expectations near $285.9 million. Revenue increased 20.9% year over year, and earnings improved from $0.33 per share in the prior-year quarter. ServiceTitan Announces Fiscal Second Quarter Financial Results
• Positive Sentiment: The quarterly results suggest continued demand for ServiceTitan’s software platform for the trades, with revenue growth and profitability ahead of Wall Street expectations. ServiceTitan Q2 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: ServiceTitan appointed company veteran Rikus Pretorius as its next chief revenue officer. Current CRO Ross Biestman will remain through the end of the fiscal year, making the transition orderly but adding uncertainty around the sales organization’s execution. ServiceTitan Names Rikus Pretorius Next Chief Revenue Officer
• Negative Sentiment: Fiscal Q3 revenue guidance of $285 million-$287 million came in slightly below the $287.8 million consensus estimate. The outlook, combined with the CRO transition, overshadowed the strong Q2 results and has led to a sharp decline in the stock. Why ServiceTitan Stock Is Diving After Earnings Beat
• Negative Sentiment: Management’s sales-leadership shakeup is raising investor concerns about growth execution, particularly because the company remains unprofitable on a GAAP basis and analysts expect a full-year loss. ServiceTitan Tumbles as Management Shakeup Overshadows Results

ServiceTitan Company Profile

ServiceTitan, Inc NASDAQ: TTAN is a cloud-based software provider specializing in end-to-end business management solutions for residential and commercial trade contractors. The company's platform integrates customer relationship management, scheduling and dispatch, mobile workforce management, invoicing, payments and reporting tools into a single suite. By automating key back-office processes, ServiceTitan helps field service businesses improve operational efficiency, enhance customer experience and drive revenue growth.

At the core of ServiceTitan's offering is a mobile application that allows technicians to access job details, update work orders, capture signatures and process payments from the field.

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