ServiceTitan's fair value estimate has been lowered from about US$136.33 per share to roughly US$109.93 per share, a decline of around 19%, even as multiple Wall Street firms raised their price targets following strong first-quarter results. The revision reflects adjustments to modeled revenue growth, which was trimmed from approximately 18.41% to about 17.19%, a slight reduction in projected net profit margin from around 12.41% to roughly 12.11%, a lower future P/E assumption from about 97.5 times to roughly 73.4 times, and a modest increase in the discount rate from about 8.51% to approximately 8.59%. Analysts at Morgan Stanley, TD Cowen, BTIG, BMO Capital, Piper Sandler, Citi, Baird, and Truist raised their price targets after the company posted a clean earnings beat and higher guidance, with Piper Sandler highlighting a US$12.8 million revenue beat as one of ServiceTitan's strongest since its IPO. However, BTIG and TD Cowen also lowered their targets in May, citing broader software multiple compression, while Citi maintained a Neutral rating despite lifting its target, reflecting ongoing valuation debates.
ServiceTitan, Inc. Class A Common StockFair value estimate dropped 19% due to lower revenue growth, margin, P/E, and higher discount rate.