Morgan Stanley Upgrades ServiceTitan (TTAN) to Overweight

Morgan Stanley analyst Josh Baer upgraded ServiceTitan (NASDAQ: TTAN) from Equalweight to Overweight with a price target of $131.00 (from $125.00).

The analyst comments: "When we initiated on ServiceTitan about a year ago, we initiated at Equal-weight, with the view "great company, stock fairly priced". We had some concerns around 1) high investor expectations and valuation, 2) replicating Residential success in Commercial segment, and 3) GTM efficiency/profitability. We are now constructive across all three areas (see details below), aligning our view of "Great Company" with "Great Stock". We see ServiceTitan as an underpriced compounder - a leading vertical software asset very well positioned for AI (see below for data / AI moat commentary). We think the combination of durability of growth and margin expansion can drive TTAN to our $131 price target. Importantly, we not only see attractive upside and a 5:1 bull / bear skew on a 1-yr horizon, but also believe TTAN should be a core portfolio holding over a longer-time horizon. Further, ServiceTitan screens well on an absolute and relative basis to our coverage under our framework for identifying attractive Vertical end-markets and attractive Vertical Software companies."

For an analyst ratings summary and ratings history on ServiceTitan click here. For more ratings news on ServiceTitan click here.

Shares of ServiceTitan closed at $90.78 yesterday.

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