ServiceTitan (TTAN) PT Lowered to $100 at Stifel Following 20% Pullback in Stock

Stifel analyst Parker Lane lowered the price target on ServiceTitan (NASDAQ: TTAN) to $100.00 (from $125.00) while maintaining a Buy rating.

The analyst commented, "ServiceTitan traded down ~20% as TTAN reported its thinnest beat as a public company (2.7% versus 3.7%-5.7% and our ~5% expectation) and guided ahead by less than the beat.Looking under the hood, the subscription beat was thinner than usual and Usage faced headwinds from slower than expected GTV growth due to lighter job growth/lead volume, particularly in May/June before a healthier July. Based on our conversation with management, we believe F2H subscription performance was largely within plan, despite the smoother 1Q to 2Q ramp.Additionally, the company is incrementally ramping Max capacity and investment, and is seeing a greater share of new deals from Max. Given the different revenue recognition practices (ramping structure, consumption-driven) around Max and management's decision to absorb onboarding fees, TTAN will face $4-5mn of top-line headwinds across subscription and services, as the proportion of new business coming from Max grows."

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