William Blair analyst Jonathan Ho has maintained their bullish stance on TYL stock, giving a Buy rating yesterday.
Jonathan Ho has given his Buy rating due to a combination of factors including Tyler Technologies’ robust financial performance and positive market trends. The company reported a solid growth in its SaaS annual recurring revenue (ARR), which increased by 21% to $720.3 million, alongside an 18.5% rise in transaction-based revenues. This indicates a strong demand for Tyler’s services, contributing to a 13.3% year-over-year growth in total ARR.
Additionally, despite a decline in free cash flow, Tyler Technologies raised its full-year revenue and pro forma EPS guidance, reflecting confidence in its business strategy and the overall spending environment. The company’s recurring revenue, which now makes up 86.3% of total revenue, and the high SaaS mix in new contracts further underscore its strong market positioning. These factors, combined with continued strong market activity and healthy state and local government spending, support Jonathan Ho’s Buy rating for Tyler Technologies.
Ho covers the Technology sector, focusing on stocks such as CyberArk Software, Check Point, and Cellebrite DI. According to TipRanks, Ho has an average return of 10.8% and a 48.89% success rate on recommended stocks.
In another report released yesterday, Oppenheimer also maintained a Buy rating on the stock with a $675.00 price target.