BMO Capital Markets Cuts ServiceTitan (NASDAQ:TTAN) Price Target to $90.00

ServiceTitan (NASDAQ:TTAN) had its price objective cut by BMO Capital Markets from $103.00 to $90.00 in a research note issued to investors on Wednesday morning, MarketBeat.com reports. They currently have an outperform rating on the stock.

Several other brokerages also recently commented on TTAN. Weiss Ratings upgraded ServiceTitan from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, August 26th. 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. Needham & Company LLC reissued a “buy” rating and issued a $100.00 price target on shares of ServiceTitan in a report on Wednesday. UBS Group reissued a “buy” rating on shares of ServiceTitan in a report on Wednesday, July 22nd. Finally, Evercore set a $90.00 price objective on shares of ServiceTitan in a research note on Wednesday. Fourteen equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $96.38.

ServiceTitan Price Performance

NASDAQ:TTAN opened at $54.68 on Wednesday. The company has a market cap of $5.22 billion, a P/E ratio of -40.21 and a beta of 0.11. The stock’s fifty day moving average price is $83.41 and its two-hundred day moving average price is $72.42. ServiceTitan has a 1 year low of $53.80 and a 1 year high of $119.60.

ServiceTitan (NASDAQ:TTAN) last announced its quarterly earnings results on Tuesday, September 8th. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.05. ServiceTitan had a negative return on equity of 5.65% and a negative net margin of 12.12%.The company had revenue of $292.76 million during the quarter, compared to analysts’ expectations of $285.89 million. During the same period in the previous year, the business earned $0.33 earnings per share. The firm’s quarterly revenue was up 20.9% compared to the same quarter last year. On average, analysts expect that ServiceTitan will post -0.54 earnings per share for the current fiscal year.

Insider Activity at ServiceTitan

In related news, CFO David Sherry sold 20,192 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $66.19, for a total value of $1,336,508.48. Following the transaction, the chief financial officer directly owned 398,033 shares in the company, valued at approximately $26,345,804.27. This represents a 4.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President Vahe Kuzoyan sold 114,732 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $88.84, for a total transaction of $10,192,790.88. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 514,837 shares of company stock valued at $39,203,222 in the last ninety days. Insiders own 39.89% of the company’s stock.

Hedge Funds Weigh In On ServiceTitan

A number of large investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. increased its holdings in shares of ServiceTitan by 1,005.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 431 shares of the company’s stock worth $46,000 after buying an additional 392 shares during the period. Sunbelt Securities Inc. lifted its stake in ServiceTitan by 391.0% in the fourth quarter. Sunbelt Securities Inc. now owns 491 shares of the company’s stock worth $52,000 after acquiring an additional 391 shares during the period. Parallel Advisors LLC boosted its holdings in ServiceTitan by 161.7% in the third quarter. Parallel Advisors LLC now owns 526 shares of the company’s stock valued at $53,000 after acquiring an additional 325 shares in the last quarter. Daiwa Securities Group Inc. bought a new stake in ServiceTitan in the fourth quarter valued at $68,000. Finally, State of Wyoming purchased a new position in ServiceTitan during the 1st quarter valued at $48,000.

ServiceTitan News Summary

Here are the key news stories impacting ServiceTitan this week:

• Positive Sentiment: ServiceTitan reported fiscal Q2 revenue of approximately $292.8 million, up 21% year over year, exceeding analyst expectations. Non-GAAP free cash flow reached a record $50.5 million, while the non-GAAP operating margin improved to 15.2%. ServiceTitan Bets on Max Despite Near-Term Headwinds
• Positive Sentiment: BTIG Research reaffirmed its “Buy” rating, indicating that at least one analyst believes the recent selloff has created an attractive long-term entry point. BTIG Reaffirms Buy Rating
• Neutral Sentiment: Analyst coverage remains mixed. Citigroup, Stifel Nicolaus, TD Cowen and Piper Sandler all reduced their price targets to $76, $100, $100 and $110, respectively, while still maintaining targets well above the recent trading level. Citigroup Lowers Price Target
• Negative Sentiment: The primary catalyst for the selloff was disclosure of unexpected revenue-recognition timing differences and slower year-over-year growth in fiscal Q2. Investors appear concerned that reported results may not fully reflect the underlying pace of demand, even though revenue and adjusted profitability exceeded estimates. ServiceTitan Scrutinized Over Revenue Timing
• Negative Sentiment: Robert W. Baird, KeyCorp and BMO Capital Markets issued more pessimistic forecasts, adding to concerns about valuation, near-term execution and the company’s continued net losses. Baird Issues Pessimistic Forecast
• Negative Sentiment: Commentary following the earnings call concluded that the quarter was not disastrous but was insufficient to support an analyst upgrade, reinforcing the market’s cautious view of ServiceTitan’s near-term outlook. ServiceTitan Q2 Analysis

ServiceTitan Company Profile

ServiceTitan, Inc develops cloud-based software designed to help residential and commercial contractors manage and grow their businesses. Its platform supports trades such as heating, ventilation and air conditioning, plumbing, electrical, roofing, and other field-service industries.

The company’s products and services cover key business functions, including customer relationship management, lead generation, scheduling and dispatching, estimates, job management, invoicing, payments, financing, payroll, and business analytics.