ServiceTitan (TTAN) is One of Piper Sandler's Top Picks in the Software Industry

ServiceTitan Inc. (NASDAQ:TTAN) is one of the 11 Best Beaten Down Growth Stocks to Buy Now.

On February 3, Piper Sandler trimmed its target price on ServiceTitan by 14.3% to $120 (from $140) but retained its Overweight call on the stock. In addition, the firm said that ServiceTitan is one of its top picks in the software industry, next to Microsoft (NASDAQ:MSFT).

Similar to Piper Sandler’s comment on Vertex Inc. (NASDAQ:VERX), concerns about seat compression due to the impact of artificial intelligence, specifically vibe coding, were key reasons for the target price cut on TTAN. Piper Sandler emphasized that its decision does not reflect the firm’s conviction regarding TTAN’s Q4-2026 earnings (which will be released on March 12).

For context, Anthropic’s launch of open-source plugins for Claude Cowork on January 30 spooked investors who fear that most software can eventually be replaced with these self-serve open-source generative AI tools. As such, this release from Anthropic erased $285 billion in market capitalization for software, financial services, and asset management stocks, according to Bloomberg.

ServiceTitan’s stock price fell 21.8% to $61.29 (from $78.34) because of this news, before rebounding slightly to $63.74. Despite the sell-off, most analysts are still convinced that TITAN is a good investment. According to CNN, the median target price is $130.50, implying an upside of 104.74%.

ServiceTitan Inc. (NASDAQ:TTAN) is a customer relationship management (CRM) software provider, catering specifically to trade persons and service contractors. The company is located in Glendale, California, and was founded in June 2008 by Ara Mahdessian and Vahe Kuzoyan.

While we acknowledge the potential of ServiceTitan Inc. (NASDAQ: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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Disclosure: None. This article is originally published at Insider Monkey.