Piper Sandler Cuts ServiceTitan (NASDAQ:TTAN) Price Target to $110.00

Key Points

• Piper Sandler lowered ServiceTitan’s price target to $110 from $115 while maintaining an “overweight” rating, implying 34.84% upside from the $81.58 share price. Analysts overall assign the stock a “Moderate Buy” consensus rating 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. However, fiscal Q3 revenue guidance of $285 million to $287 million fell slightly below estimates, while an upcoming chief revenue officer transition raised execution concerns.
• Insiders sold $39.2 million of stock over the past 90 days, although institutional investors including California State Teachers Retirement System and Franklin Resources increased their positions.

ServiceTitan (NASDAQ:TTAN - Get Free Report) had its price target cut by investment analysts at Piper Sandler from $115.00 to $110.00 in a report issued on Wednesday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Piper Sandler's price objective suggests a potential upside of 34.84% from the stock's current price.

Other research analysts have also recently issued reports about the stock. BTIG Research reaffirmed a "buy" rating and issued a $110.00 target price on shares of ServiceTitan in a report on Wednesday. Morgan Stanley raised their price objective on ServiceTitan from $118.00 to $124.00 and gave the company an "overweight" rating in a research note on Friday, June 5th. KeyCorp reaffirmed an "overweight" rating on shares of ServiceTitan in a report on Monday, August 24th. TD Cowen raised their price target on ServiceTitan from $110.00 to $125.00 and gave the company a "buy" rating in a research report on Friday, June 5th. Finally, Wells Fargo & Company reiterated an "overweight" rating on shares of ServiceTitan in a research report on Wednesday. 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 stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $107.33.

ServiceTitan Stock Performance

Shares of TTAN opened at $81.58 on Wednesday. The stock has a market capitalization of $7.78 billion, a P/E ratio of -56.26 and a beta of 0.11. ServiceTitan has a 1 year low of $54.17 and a 1 year high of $119.99. The company's fifty day moving average is $84.66 and its two-hundred day moving average is $72.69.

ServiceTitan (NASDAQ:TTAN - Get Free Report) last released its earnings results on Tuesday, September 8th. The company reported $0.40 EPS for the quarter, topping the consensus estimate of $0.35 by $0.05. The company had revenue of $292.76 million during 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 business's revenue was up 20.9% on a year-over-year basis. During the same quarter last year, the business earned $0.33 EPS. Sell-side analysts predict that ServiceTitan will post -0.54 EPS for the current year.

Insider Buying and Selling at ServiceTitan

In related news, CAO Michele O'connor sold 4,910 shares of the business's stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $80.93, for a total value of $397,366.30. Following the completion of the sale, the chief accounting officer directly owned 71,676 shares in the company, valued at approximately $5,800,738.68. The trade was a 6.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO David Sherry sold 9,000 shares of the company's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $90.83, for a total transaction of $817,470.00. Following the transaction, the chief financial officer directly owned 386,757 shares of the company's stock, valued at $35,129,138.31. This trade represents a 2.27% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 514,837 shares of company stock valued at $39,203,222. 39.89% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ServiceTitan

A number of institutional investors have recently added to or reduced their stakes in the company. California State Teachers Retirement System lifted its stake in shares of 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 purchasing an additional 4,474,137 shares in the last quarter. Franklin Resources Inc. raised its holdings in ServiceTitan by 33.8% in the fourth quarter. Franklin Resources Inc. now owns 2,014,025 shares of the company's stock valued at $214,494,000 after buying an additional 508,848 shares during the period. Artisan Partners Limited Partnership raised its holdings in ServiceTitan by 47.3% in the fourth quarter. Artisan Partners Limited Partnership now owns 1,617,353 shares of the company's stock valued at $172,248,000 after buying an additional 519,024 shares during the period. Greenoaks Capital Partners LLC lifted its position in ServiceTitan by 20.6% during the fourth quarter. Greenoaks Capital Partners LLC now owns 1,552,257 shares of the company's stock valued at $165,315,000 after buying an additional 264,926 shares in the last quarter. Finally, Capital International Investors lifted its position in ServiceTitan by 23.9% during the fourth quarter. Capital International Investors now owns 1,224,699 shares of the company's stock valued at $130,430,000 after buying an additional 236,287 shares in the last quarter.

Key Headlines Impacting ServiceTitan

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

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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