Analyst Andrew Sherman from TD Cowen reiterated a Buy rating on Tyler Technologies and decreased the price target to $450.00 from $500.00.
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Andrew Sherman has given his Buy rating due to a combination of factors, including Tyler Technologies’ attractive valuation and solid long‑term growth framework despite near‑term booking uncertainties. He notes that while SaaS bookings growth recently lagged the ambitious FY26 revenue target, easier upcoming comparisons, management’s breakdown of growth drivers, and the incremental boost from the For The Record acquisition all support confidence in reacceleration over time.
He also highlights that the company’s June analyst day could act as a positive catalyst, with potential upward revisions to long‑term margin targets driven by improving SaaS economics and efficiency gains from AI. In Sherman’s view, Tyler’s resilient public sector customer base, mission‑critical software positioning, and role as a trusted AI partner, combined with a roughly 18x EV/FCF multiple and durable free‑cash‑flow profile, justify maintaining a Buy recommendation even as the price target is trimmed to reflect sector‑wide multiple compression.
Sherman covers the Technology sector, focusing on stocks such as Procore Technologies, Tyler Technologies, and JFrog. According to TipRanks, Sherman has an average return of -6.2% and a 35.92% success rate on recommended stocks.
In another report released on April 13, D.A. Davidson also maintained a Buy rating on the stock with a $460.00 price target.