Tyler Tech (TYL) PT Raised to $625 at Oppenheimer
Oppenheimer analyst Ken Wong raised the price target on Tyler Tech (NYSE: TYL) to $625.00 (from $550.00) while maintaining a Outperform rating.
The analyst comments "TYL reported a solid 2Q, raised the top-line outlook for a second straight quarter and increased its FCF margin outlook by a point. FY24E revenue guidance moved up by $10M on a stronger transaction growth outlook (low-double digits vs. high-single digits previously). 2Q revenue was in line with the Street and ahead on profitability, but ahead of management's internal expectations. Demand commentary remains strong. We remain positive on TYL's execution on top- and bottom-line initiatives buoyed by a favorable public sector demand backdrop. Valuation is rich (~52x EV/CY25E FCF vs. 36x for peers), but we think TYL deserves a premium for its vertical leadership and recent results. We reiterate our Outperform rating and raise our PT to $625 from $550 on higher estimates and terminal multiple."