ServiceTitan (TTAN) Offers Long-Term Margin Expansion

ServiceTitan Incorporated (NASDAQ:TTAN) is one of the 12 oversold software stocks to invest in.

On January 20, Josh Baer from Morgan Stanley upgraded his rating on ServiceTitan Incorporated (NASDAQ:TTAN) from Equal Weight to Overweight. The analyst also raised the price target from $125 to $131, leading to a revised upside potential of 109%.

According to Baer, prior areas of caution, including valuation and growth execution, have now improved meaningfully. He pointed towards a stronger conviction in the company’s underlying performance and strategy. Therefore, the stock is now Morgan Stanley’s new top pick in the sector, replacing Toast (TOST).

On January 13, Goldman Sachs analyst Adam Hotchkiss initiated coverage on ServiceTitan Incorporated (NASDAQ:TTAN) with a Neutral rating. The analyst estimated a $117 price target, noting the company’s leading presence in the under-digitized trades market, which drives a large expansion opportunity. He cautioned that the stock’s current valuation limits immediate upside despite an attractive long-term margin and growth outlook.

ServiceTitan Incorporated (NASDAQ:TTAN) operates cloud-based software platforms that integrate various business functions, such as advertising, contracting, invoicing, payment processing, reporting, recruitment, and others. It facilitates these functions through ServiceTitan, FieldRoutes, Aspire, and Convex platforms. The company also engages with heating, ventilation, and air conditioning (HVAC) businesses for plumbing, irrigation, water treatment, painting, pest control, roofing, and other relevant solutions.

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Disclosure: None. This article is originally published at Insider Monkey.