Cautious Hold Rating on ServiceTitan, Inc. Amid Mixed Market Sentiment and Growth Uncertainty

Analyst Josh Baer of Morgan Stanley maintained a Hold rating on ServiceTitan, Inc. Class A, retaining the price target of $118.00.

Josh Baer has given his Hold rating due to a combination of factors surrounding ServiceTitan, Inc. Class A’s current market position and future outlook. Despite the company’s strong performance in the second quarter, its stock has not kept pace with other similar-sized software companies. This underperformance is partly due to concerns about the residential HVAC market, which is a significant part of ServiceTitan’s business. Investors are divided on the market’s health, with some seeing potential headwinds from OEMs as a threat to growth, while others view these as short-term issues that do not affect the company’s long-term prospects.
ServiceTitan’s business model, which includes a subscription-based approach and a focus on non-discretionary jobs, provides some insulation from market volatility. The company also benefits from various growth avenues, such as expanding its product offerings and increasing its presence in both residential and commercial markets. However, given the mixed investor sentiment and the potential for only modest financial outperformance in the near term, Josh Baer prefers to adopt a cautious stance, recommending a Hold rating until there is more clarity on the company’s growth trajectory and market conditions.

In another report released on November 18, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $97.00 price target.