ServiceTitan Upgraded to Overweight by Morgan Stanley

Written by Emily J. Thompson, Senior Investment Analyst

Source: SeekingAlpha

Updated: Mar 06 2024

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Should l Buy TTAN?

Source: SeekingAlpha

ServiceTitan's stock has dropped by 13.31% as it crosses below the 5-day SMA, reflecting broader market weakness with the Nasdaq-100 down 1.07% and S&P 500 down 0.51%.

Morgan Stanley analyst Josh Baer upgraded ServiceTitan from Equal-weight to Overweight, raising the price target from $125 to $131, reflecting confidence in the company's future growth prospects. The firm views ServiceTitan as a leading vertical software asset well-positioned for AI, capable of driving stock price appreciation through steady growth and margin expansion.

Despite the upgrade, ServiceTitan's stock continues to face pressure from investor concerns about the impact of AI on SaaS companies, highlighting the need for cautious optimism in the current market environment.

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Analyst Views on TTAN

Wall Street analysts forecast TTAN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TTAN is 137.92 USD with a low forecast of 125.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

13 Analyst Rating

12 Buy

1 Hold

0 Sell

Strong Buy

Current: 61.290

Low

125.00

Averages

137.92

High

160.00

Current: 61.290

Low

125.00

Averages

137.92

High

160.00

Piper Sandler

Overweight

NULL

downgrade

$140 -> $120

2026-02-02

Reason

Piper Sandler

Price Target

$140 -> $120

AI Analysis

2026-02-02

downgrade

Overweight

NULL

Reason

Piper Sandler lowered the firm's price target on ServiceTitan to $120 from $140 and keeps an Overweight rating on the shares following a transfer of coverage. The firm downgraded three names and cut price targets across the platforms and apps group, saying "seat-compression and vibe coding narratives could set a ceiling on multiples." Piper is not making a call on the Q4 reports. Rather, the analyst has mixed views on the software space despite share declines in the past 12 months. The firm expects continued "pessimism" around software and recommends investors focus on the hyperscaler, consumption and vertical sub-sectors. Piper's top picks are Microsoft and ServiceTitan.

Morgan Stanley

Equal Weight

maintain

$118 -> $125

2025-12-05

Reason

Morgan Stanley

Price Target

$118 -> $125

2025-12-05

maintain

Equal Weight

Reason

Morgan Stanley raised the firm's price target on ServiceTitan to $125 from $118 and keeps an Equal Weight rating on the shares. Q3 results and FY26 guidance that beat consensus across all metrics are "effectively 'turning-off' the HVAC debate," the analyst tells investors. Another healthy beat and raise, with "very little, if anything to pick at" leads the firm to continue to view ServiceTitan as "an attractive Vertical Software asset," notes the analyst, who still thinks investors expect durable low-20%'s platform growth, which the firm calls "achievable, but difficult to outperform."

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About TTAN

ServiceTitan, Inc. is an end-to-end technology platform built for contractors to transform the performance of their businesses. The Company’s software provides an end-to-end, cloud-based software platform that connects and manages an array of business workflows such as advertising, job scheduling and management, dispatching, generating estimates and invoices, payment processing and more. The Company has designed its platform to address key workflows for trade businesses, including call tracking, scheduling, dispatching, end-customer communications, marketing automation, estimating, sales, inventory, and payroll integration. Its platform offers key benefits through three main offerings, including Core, FinTech and Pro products. Its core product offers base-level functionality across all key workflows. Customers access its platform through a Web browser and through a mobile application.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

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