TD Cowen reiterated ServiceTitan as a top pick, emphasizing a set of persistent growth drivers the brokerage believes will support elevated revenue growth and favorable valuation outcomes for the trades-focused software provider.
The firm’s investment case rests on three principal observations: ServiceTitan’s clear leadership within a substantial and stable market, encouraging readouts from customer checks, and company guidance that TD Cowen interprets as conservative - offering room for beat-and-raise scenarios.
TD Cowen kept a Buy rating on the stock and highlighted a robust quarterly performance announced in early June as validation of the firm’s outlook.
Four structural growth vectors were singled out as the primary sources of sustained momentum through the year. TD Cowen outlined these as the Max programme, enterprise expansion, commercial growth, and roofing.
The Max programme was described as a bundled offering that assembles core and professional products together with agentic capabilities designed to drive demand generation, increase booking rates, and raise average ticket size. According to TD Cowen, early customer uptake of Max has been strong, and fully ramped Max deployments are automating in excess of 10% of jobs on average - a figure the firm views as an initial indicator of the programme’s revenue potential.
Virtual Agents, a component that includes outbound calling and receptionist functionality, have reportedly gained traction following an expanded go-to-market push. TD Cowen noted the integration of these capabilities across ServiceTitan’s broader platform as a meaningful competitive differentiator.
Margins and efficiency were another focal point in TD Cowen’s note. The firm said margins have considerable room to expand, with artificial intelligence-driven productivity gains expected to contribute meaningfully to incremental margins. TD Cowen now anticipates incremental margins to come in above the company’s prior targets, based on its analysis.
Finally, TD Cowen judged ServiceTitan’s current valuation to be attractive, observing that the shares trade at a notable discount to the level the firm believes would be appropriate given the company’s growth profile.
Context and implications
TD Cowen’s analysis frames ServiceTitan as a growth software name with several interlocking levers that, if they continue to perform as described by the brokerage, could support both top-line expansion and margin improvement. The firm’s emphasis on adoption metrics, automation rates for Max customers, and integration of Virtual Agents underscores a focus on unit-level productivity and the potential for revenue per customer to rise.