ServiceTitan (TTAN) Upgrade Highlights AI & Data Moat, Morgan Stanley Says

ServiceTitan Inc. (NASDAQ:TTAN) is one of the Buzzing AI Stocks Analysts are Watching. On January 20, Morgan Stanley analyst Josh Baer upgraded the stock from Equalweight to Overweight with a price target of $131.00 (up from $125.00). The firm sees ServiceTitan as an underpriced compounder and a leading vertical software asset, very well positioned for AI.

Morgan Stanley’s upgrade comes nearly one year after it initiated coverage of the stock at “Equal-weight,” believing it was a great company and fairly priced. There were some concerns earlier, particularly regarding high investor expectations and valuation, success in Commerical segment, and GTM profitability.

The firm said that it is now constructive across all these areas, which makes it both a great company and a great stock. Morgan Stanley also believes that TTAN is very well-positioned for artificial intelligence.

We see ServiceTitan as an underpriced compounder - a leading vertical software asset very well positioned for AI.

The bank said that the combination of steady growth and margin expansion can drive the stock to its $131 price target. It noted that shares see an attractive upside and a 5:1 bull/bear skew on a one-year horizon, while also viewing the company as a core portfolio holding over the longer term.

It further added that ServiceTitan looks attractive on its own and also when compared to peers in the Vertical software space.

Further, ServiceTitan screens well on an absolute and relative basis to our coverage under our framework for identifying attractive Vertical end-markets and attractive Vertical Software companies.

ServiceTitan Inc. (NASDAQ:TTAN) provides an end-to-end cloud-based software platform in the US and Canada. Its platform connects and manages a range of business workflows.

While we acknowledge the potential of TTAN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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