ServiceTitan stock is up 42% in its market debut on the Nasdaq (NDAQ) exchange, surpassing expectations for the cloud-based software company.
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The company’s shares opened trading at $101 each, which was substantially above their initial public offering (IPO) price of $71, giving the company a market capitalization of $8.97 billion. ServiceTitan is the last major IPO on Wall Street this year.
The debut of TTAN stock is also the largest IPO since social media platform Reddit (RDDT) and cybersecurity firm Rubrik (RBRK) went public this spring. The ServiceTitan IPO has raised about $625 million in capital for the company, which makes cloud software that helps contractors such as plumbers and roofers advertise, schedule jobs, dispatch workers, invoice clients, and receiving payments.
IPO Market Recovery
ServiceTitan’s IPO is also notable as few tech companies have tested public markets since late 2021, when rising interest rates caused a bear market that lasted most of 2022, and inflation prompted investors to abandon riskier assets such as newly public companies.
However, with markets now at all-time highs, several other companies have suggested they might go public in 2025. They include chipmaker Cerebras and online lender Klarna. At its IPO price, ServiceTitan was valued at just over nine times trailing 12-month revenues.
Is Fidelity Nasdaq Composite Index ETF (ONEQ) a Buy?
It’s too early for any analysts to offer ratings and price targets on TTAN stock. So instead we look at the Nasdaq Composite index on which ServiceTitan trades. The Fidelity Nasdaq Composite Index ETF, which tracks the Nasdaq Composite, has a consensus Moderate Buy rating among 1,026 Wall Street analysts. That rating is based on 757 Buy, 249 Hold, and 20 Sell recommendations made in the last three months. The average ONEQ price target of $85.77 implies 8.67% upside from current levels.
