ServiceTitan’s Strong Revenue Growth and Market Stability Justify Buy Rating

Analyst Max Rakhlenko of TD Cowen maintained a Buy rating on ServiceTitan, Inc. Class A (TTAN – Research Report), with a price target of $140.00.

Max Rakhlenko has given his Buy rating due to a combination of factors including ServiceTitan’s strong revenue growth and stability in its end-markets. The company is expected to report a revenue growth of 23%, aligning with the higher end of its guidance, and is anticipated to exceed expectations in the upcoming fiscal year. This optimism is supported by the company’s performance in the previous quarter, where it surpassed high-end estimates, and the expectation of similar results in the current quarter.
Additionally, ServiceTitan benefits from the non-discretionary nature of a significant portion of its jobs, providing stability even in fluctuating economic conditions. The company’s growth is further bolstered by positive macroeconomic sentiment and favorable conditions in the home improvement sector, as evidenced by increased backlogs and declining HELOC rates. Investor feedback has been positive, aligning with the firm’s view on the market’s size, stability, and growth potential, which supports the Buy rating.

Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Home Depot, Lowe’s, and O’Reilly Auto. According to TipRanks, Rakhlenko has an average return of 7.9% and a 60.40% success rate on recommended stocks.