10 Best Software Application Stocks to Buy According to Hedge Funds

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8. Tyler Technologies (NYSE:TYL)

Sector/Industry: Technology (Software Application)

Share Price: $446.15

Potential Upside: 38.4%

Number of Hedge Fund Holders: 44

Tyler Technologies (NYSE:TYL) is one of the best software application stocks to buy according to Hedge Funds.

On January 13, Goldman Sachs analyst Adam Hotchkiss maintained a Buy rating for Tyler Technologies (NYSE:TYL). His forecasts lead to an upside of 26% based on a price target of $560.

Hotchkiss acknowledged the company’s portfolio as a hedge against the possibility of underperformance in certain sub-verticals. He views the business to be well-positioned for technology adoption, both at the local and state levels. He also forecasted compound annual growth in subscription revenue in the mid-teens through 2030, given their multi-year cloud transition. With ongoing cloud conversion momentum expected to persist, the business seems to be on track to surpass management’s 2030 operational targets.

J. Parker Lane from Stifel Nicolaus initiated coverage on Tyler Technologies (NYSE:TYL), on January 8. He assigned a Buy rating with a price target of $550, resulting in an upside of 23%.

Lane attributed his views to the company’s commitment towards the public sector through software and payment solutions, which have made it a key stakeholder in the digitalization efforts of government sector entities. Such an impressive track record has yielded a strong demand from government agencies that are aiming for cybersecurity protection and operational efficiencies.

Tyler Technologies (NYSE:TYL) provides integrated solutions for the public sector through its two segments, i.e., Enterprise Software and Platform Technologies. They offer cloud-based transformative technology solutions such as public safety, payments, cybersecurity, customized employee training, and other digital solutions. Their software solutions allow for enhanced public service delivery through AI-enabled tools.

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