Needham & Company Starts Tyler Tech (TYL) at Buy

Needham & Company initiates coverage on Tyler Tech (NYSE: TYL) with a Buy rating and a price target of $160.00.

Analyst Scott Berg commented, "We believe Tyler possesses all the fundamental strengths we seek in an investment opportunity: 1) a dominant product portfolio driving best-in-class win rates, 2) model leverage driving already high profitability levels, 3) evolving visibility through fast-growing recurring revenues, and 4) a demand environment that can remain at elevated levels for several years. We believe these strengths can further improve over the near term. We acknowledge that the stock may look expensive (trading at EV/Rev of 6.5x FY16 revenues, 23x FY16 EBITDA, and 44x FY16 EPS -ex. $6 in cash), but we believe high-quality dominant themes like TYL deserve premium valuations with sustained executional excellence."

For an analyst ratings summary and ratings history on Tyler Tech click here. For more ratings news on Tyler Tech click here.

Shares of Tyler Tech closed at $139.29 yesterday.

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