Morgan Stanley upgraded ServiceTitan (TTAN) from 'Equalweight' to 'Overweight'. The firm raised its price target to $131 from $125.
Morgan Stanley cited three key reasons for the improved rating: a constructive view on investor expectations, success in the commercial segment, and go-to-market efficiency.
The upgrade follows a stock decline of over 10% in the past week. The investment bank now views ServiceTitan as an "underpriced compounder." Morgan Stanley also considers TTAN a leading vertical software asset well-positioned for artificial intelligence developments.
The $131 price target suggests a potential 44% upside from the previous closing price of $90.78. Morgan Stanley believes durable growth combined with potential for margin expansion will drive the stock's performance.