On September 15, ServiceTitan rose 5.32% in regular trading, trading at approximately $57.70 per share, with turnover of $154 million. The stock is rebounding after a nearly 30% decline following the release of its fiscal Q2 earnings report, which had sent shares to a record low.
On the news front, Morgan Stanley stated that ServiceTitan's post-earnings sell-off presents an attractive buying opportunity, maintaining its Overweight rating and Top Pick designation. The firm highlighted that the most significant development from the earnings call was the accelerated adoption of ServiceTitan's AI platform, MAX, which is exceeding goals, with the company expecting more than 700 locations using the platform by fiscal year-end. Revenue recognition for MAX, however, faces a timing lag. Separately, Truist trimmed its price target from $110 to $100 but maintained a Buy rating.
ServiceTitan's fiscal Q2 results showed adjusted EPS of $0.40, beating the $0.35 consensus estimate by 14.3%, while revenue of $292.8 million topped the $285.9 million estimate, reflecting 21% year-over-year growth. However, the Q3 revenue guidance midpoint of $286 million came in below the $287.9 million analyst expectation, triggering the initial sell-off. The company also announced a leadership transition, naming Rikus Pretorius as its next Chief Revenue Officer.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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