Citigroup Cuts ServiceTitan (NASDAQ:TTAN) Price Target to $76.00

Key Points

• Citigroup lowered ServiceTitan’s price target from $83 to $76 while maintaining a neutral rating, though the new target implies 33.28% upside from the prior close.
• ServiceTitan exceeded quarterly expectations with EPS of $0.40 and revenue of $292.76 million, up 20.9% year over year. However, weaker-than-expected third-quarter revenue guidance prompted several analysts to cut their targets.
• The stock fell to $57.02 in heavy trading, while analyst sentiment remained broadly positive with a “Moderate Buy” consensus and average target of $96.38.

ServiceTitan (NASDAQ:TTAN - Get Free Report) had its price target lowered by analysts at Citigroup from $83.00 to $76.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Citigroup's target price would suggest a potential upside of 33.28% from the company's previous close.

TTAN has been the subject of a number of other reports. Weiss Ratings raised ServiceTitan from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, August 26th. Canaccord Genuity Group reduced their price objective on ServiceTitan from $105.00 to $90.00 and set a "buy" rating for the company in a research note on Wednesday. TD Cowen lowered their target price on ServiceTitan from $125.00 to $100.00 and set a "buy" rating on the stock in a report on Wednesday. KeyCorp reduced their target price on shares of ServiceTitan from $120.00 to $110.00 and set an "overweight" rating on the stock in a research note on Wednesday. Finally, Stifel Nicolaus decreased their target price on shares of ServiceTitan from $125.00 to $100.00 and set a "buy" rating on the stock in a report on Wednesday. Fourteen analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $96.38.

ServiceTitan Stock Performance

Shares of TTAN traded down $24.56 during mid-day trading on Wednesday, reaching $57.02. The stock had a trading volume of 20,651,922 shares, compared to its average volume of 1,547,225. The business has a fifty day moving average of $84.66 and a 200 day moving average of $72.69. The firm has a market cap of $5.44 billion, a price-to-earnings ratio of -39.51 and a beta of 0.11. ServiceTitan has a 12 month low of $54.17 and a 12 month high of $119.60.

ServiceTitan (NASDAQ:TTAN - Get Free Report) last released its quarterly earnings data 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 analysts' expectations of $285.89 million. ServiceTitan had a negative net margin of 13.44% and a negative return on equity of 5.59%. The company's revenue for the quarter was up 20.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.33 earnings per share. On average, research analysts forecast that ServiceTitan will post -0.54 EPS for the current fiscal year.

Insider Transactions at ServiceTitan

In other ServiceTitan news, CFO David Sherry sold 20,192 shares of the firm's stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $66.19, for a total value of $1,336,508.48. Following the sale, the chief financial officer directly owned 398,033 shares in the company, valued at $26,345,804.27. This trade represents a 4.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ara Mahdessian sold 51,947 shares of the firm's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $80.98, for a total value of $4,206,668.06. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 514,837 shares of company stock valued at $39,203,222 in the last 90 days. Insiders own 39.89% of the company's stock.

Institutional Investors Weigh In On ServiceTitan

Several large investors have recently modified their holdings of TTAN. California State Teachers Retirement System grew its position in ServiceTitan by 7,065.5% in the 2nd quarter. California State Teachers Retirement System now owns 4,537,461 shares of the company's stock valued at $320,844,000 after buying an additional 4,474,137 shares during the last quarter. Franklin Resources Inc. lifted its stake in shares of ServiceTitan by 33.8% in the 4th quarter. Franklin Resources Inc. now owns 2,014,025 shares of the company's stock worth $214,494,000 after acquiring an additional 508,848 shares during the period. Artisan Partners Limited Partnership lifted its stake in shares of ServiceTitan by 47.3% in the 4th quarter. Artisan Partners Limited Partnership now owns 1,617,353 shares of the company's stock worth $172,248,000 after acquiring an additional 519,024 shares during the period. Greenoaks Capital Partners LLC boosted its holdings in shares of ServiceTitan by 20.6% in the fourth quarter. Greenoaks Capital Partners LLC now owns 1,552,257 shares of the company's stock valued at $165,315,000 after acquiring an additional 264,926 shares in the last quarter. Finally, Capital International Investors boosted its holdings in shares of ServiceTitan by 23.9% in the fourth quarter. Capital International Investors now owns 1,224,699 shares of the company's stock valued at $130,430,000 after acquiring an additional 236,287 shares in the last quarter.

ServiceTitan News Summary

Here are the key news stories impacting ServiceTitan this week:

• Positive Sentiment: ServiceTitan reported fiscal second-quarter EPS of $0.40, above the $0.35 consensus estimate, while revenue rose 20.9% year over year to $292.76 million, exceeding expectations of roughly $285.9 million. ServiceTitan earnings report
• Positive Sentiment: Analysts remain broadly constructive despite cutting estimates: BTIG reaffirmed a Buy rating, while Stifel, TD Cowen, Baird, BMO, KeyCorp and Piper Sandler maintained positive ratings. Analysts cited substantial upside potential and investor interest in ServiceTitan’s artificial-intelligence growth opportunity. Analyst expectations for ServiceTitan
• Neutral Sentiment: ServiceTitan named company veteran Rikus Pretorius as its next chief revenue officer. Current CRO Ross Biestman will remain through the rest of the fiscal year, creating a transition period for the sales organization. ServiceTitan names next chief revenue officer
• Negative Sentiment: Fiscal third-quarter revenue guidance of $285 million to $287 million came in slightly below the $287.8 million consensus estimate. The cautious outlook overshadowed the earnings beat and prompted multiple analysts to lower price targets, including Stifel and TD Cowen to $100, Baird to $85 and BMO to $90. Why ServiceTitan stock fell after earnings
• Negative Sentiment: A law firm announced a securities-fraud investigation and urged shareholders who suffered losses to contact it. Although the announcement does not establish wrongdoing, it adds legal and reputational risk to the stock. ServiceTitan securities-fraud investigation

About ServiceTitan

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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