On Monday, Stifel analysts maintained a Buy rating on ServiceTitan stock (NASDAQ:TTAN) with a steady price target of $120.00. The company, currently trading at $92.56 with a market capitalization of $9 billion, shows mixed signals according to InvestingPro data, with its RSI indicating overbought conditions.
The company, which recently held its first earnings call, reported financial results that were in line with the upper end of their preliminary estimates. While currently operating at a loss with -$6.86 earnings per share, analysts forecast profitability in 2025. The provided guidance, especially concerning revenue, was notably stronger than anticipated, surpassing analyst expectations by approximately 3.30 percentage points.
ServiceTitan's management emphasized the significance of establishing a routine for public company operations. Stifel analysts highlighted that ServiceTitan's ability to consistently meet and potentially exceed well-managed guidance is a key factor in developing this operational rhythm. The analysts expressed satisfaction with the fourth-quarter forecast increase and anticipate that this performance will lead to higher Street estimates for the fiscal years 2026-27.
The company attributed its successful quarter to solid execution and the strength of its Pro & Usage offerings. Stifel's analysts remain optimistic about ServiceTitan's long-term prospects, particularly in executing against these growth drivers, and have reiterated their Buy recommendation along with a $120 price target. The analysts' outlook suggests confidence in ServiceTitan's potential for sustained performance and market position.
In other recent news, ServiceTitan reported robust financial results for the third quarter, with revenue reaching $199.3 million, a 24.6% increase from the same period last year. The company anticipates a revenue between $199.0 million and $201.0 million for the fourth quarter, surpassing the consensus estimate of $193.9 million.
This positive outlook led to upward revisions from KeyBanc Capital Markets, Goldman Sachs (NYSE:GS), and Citi. KeyBanc maintained an Overweight rating on ServiceTitan, expressing optimism about the company's growth potential, while Goldman Sachs and Citi reaffirmed Neutral ratings, adjusting price targets upwards.
ServiceTitan has also revised its full-year fiscal 2025 revenue guidance to a range of $761.6 million to $763.6 million. Additionally, the company's operating margin guidance is slightly above both KeyBanc's and the Street's forecasts at 2.9%. These projections are part of the company's recent financial performance and outlook.
However, despite the strong growth, the company's adjusted loss per share widened to -$1.74 from -$1.53 year over year. The analysts from Goldman Sachs and Citi have highlighted the company's operating leverage and the need for improved execution of margin expansion as points of focus moving forward.
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