William Blair analyst Jonathan Ho has maintained their bullish stance on TYL stock, giving a Buy rating today.
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Jonathan Ho has given his Buy rating due to a combination of factors that highlight Tyler Technologies’ growth potential and strategic direction. The company has outlined a robust 2030 plan focusing on four key growth pillars, which aim to achieve a 10%-12% organic revenue growth. These pillars include leveraging the existing customer base, expanding the total addressable market with state and federal governments, transitioning to cloud solutions, and growing the transactions business.
Additionally, Tyler Technologies is poised for margin improvement by reallocating resources from cost of sales to research and development. Despite being a market leader, the company’s market share is still relatively low at 6%, indicating significant room for growth in the fragmented state and local government market. The company’s strategy of moving customers to a single cloud version for each product, although a long-term endeavor, is expected to enhance deployment and maintenance efficiency, thereby increasing upsell and cross-sell opportunities within its large installed base.
In another report released today, J.P. Morgan also reiterated a Buy rating on the stock with a $740.00 price target.