TD Cowen Cuts ServiceTitan (NASDAQ:TTAN) Price Target to $100.00

ServiceTitan (NASDAQ:TTAN) had its price target trimmed by TD Cowen from $125.00 to $100.00 in a research note published on Wednesday, Marketbeat reports. The firm currently has a buy rating on the stock.

A number of other brokerages have also weighed in on TTAN. Piper Sandler decreased their price target on shares of ServiceTitan from $115.00 to $110.00 and set an “overweight” rating on the stock in a research note on Wednesday. Citigroup reiterated a “neutral” rating on shares of ServiceTitan in a research note on Monday, June 8th. KeyCorp reduced their target price on ServiceTitan from $120.00 to $110.00 and set an “overweight” rating for the company in a report on Wednesday. Weiss Ratings upgraded ServiceTitan from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, August 26th. Finally, BTIG Research reaffirmed a “buy” rating and issued a $110.00 price target on shares of ServiceTitan in a research note on Wednesday. Fourteen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $96.38.

ServiceTitan Stock Down 2.4%

TTAN opened at $54.68 on Wednesday. The company has a market cap of $5.22 billion, a price-to-earnings ratio of -40.21 and a beta of 0.11. ServiceTitan has a 52-week low of $53.80 and a 52-week high of $119.60. The firm’s fifty day simple moving average is $83.41 and its two-hundred day simple moving average is $72.42.

ServiceTitan (NASDAQ:TTAN) last announced 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 business had revenue of $292.76 million for the quarter, compared to analyst estimates of $285.89 million. ServiceTitan had a negative net margin of 12.12% and a negative return on equity of 5.65%. 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 earned $0.33 earnings per share. On average, research analysts forecast that ServiceTitan will post -0.54 EPS for the current year.

Insider Transactions at ServiceTitan

In related news, major shareholder Iconiq Strategic Partners V, L sold 94,415 shares of the company’s stock in a transaction dated Tuesday, June 23rd. The shares were 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 of the company’s stock, valued at approximately $28,113,508.03. This represents a 17.56% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director William Griffith sold 94,415 shares of the stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $63.43, for a total transaction of $5,988,743.45. Following the completion of the sale, the director owned 443,221 shares of the company’s stock, valued at approximately $28,113,508.03. The trade was a 17.56% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 514,837 shares of company stock valued at $39,203,222. Company insiders own 39.89% of the company’s stock.

Institutional Investors Weigh In On ServiceTitan

A number of large investors have recently made changes to their positions in the stock. 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 valued at $46,000 after purchasing an additional 392 shares during the last quarter. Sunbelt Securities Inc. lifted its position in ServiceTitan by 391.0% during the fourth quarter. Sunbelt Securities Inc. now owns 491 shares of the company’s stock worth $52,000 after buying an additional 391 shares in the last quarter. Parallel Advisors LLC boosted its stake in ServiceTitan by 161.7% during the third quarter. Parallel Advisors LLC now owns 526 shares of the company’s stock worth $53,000 after buying an additional 325 shares during the last quarter. Daiwa Securities Group Inc. acquired a new position in ServiceTitan during the fourth quarter worth $68,000. Finally, State of Wyoming acquired a new position in ServiceTitan during the first quarter worth $48,000.

Key Stories Impacting ServiceTitan

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

About ServiceTitan

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.