Analyst Ratings February 23, 2026

KeyBanc Sticks With Overweight on ServiceTitan, Sees Upside as Shares Trade Below Fair Value

Analyst highlights customer demand for AI automation, management margin plan and multiple analyst actions amid recent share pullback

By Nina Shah TTAN
KeyBanc Sticks With Overweight on ServiceTitan, Sees Upside as Shares Trade Below Fair Value
TTAN

KeyBanc has reaffirmed an Overweight rating on ServiceTitan (TTAN) with a $140.00 price target, pointing to growing partner and customer interest in AI-driven automation for trades businesses and a pathway to margin improvement. The firm notes a significant YTD share decline that has pushed valuation to roughly 6x out-year EV/sales and below the stock's Fair Value, a setup KeyBanc views as attractive for longer-term investors if profitability trends continue.

Key Points

  • KeyBanc reaffirmed an Overweight rating on ServiceTitan with a $140.00 price target, citing customer and partner interest in AI-driven automation, particularly for customer service workflows - Technology and Software sectors.
  • ServiceTitan shares have pulled back roughly 37.5% year-to-date and trade near 6x out-year EV/sales, placing the stock below its Fair Value according to InvestingPro data - Equity markets and Valuation-focused investors.
  • Multiple analysts and firms have recently expressed positions on the stock: Freedom Capital Markets reiterated Buy ($155.00 target), Morgan Stanley upgraded to Overweight ($131.00 target), and Goldman Sachs initiated coverage with Neutral ($117.00 target) - Research and institutional investor community.

KeyBanc has reiterated an Overweight rating on ServiceTitan and maintained a $140.00 price target, citing recent conversations with partners and customers that revealed increased enthusiasm for deploying AI-driven automation in trades businesses. The firm said the strongest interest is centered on customer service workflows, which it interprets as a positive signal for adoption of the company’s Pro offering.

Analysts at the firm also highlighted the stock’s sharp decline year-to-date. ServiceTitan shares have fallen by about 38% so far this year, versus a 23% drop for the IGV software ETF and a roughly 2% decline for the NASDAQ, according to the note. More granular data from InvestingPro show a 37.5% YTD decline and a 36.5% decrease over six months. That selloff has compressed the company’s valuation to approximately 6 times out-year enterprise value to sales, placing the shares beneath their Fair Value, KeyBanc said.

KeyBanc described ServiceTitan’s underlying subscription model, which is technician-based, as resilient to concerns about AI-driven disruption. The firm attributes the market’s recent punitive move more to questions around the company’s profitability profile than to demand fundamentals. Supporting that view, an InvestingPro Tip referenced in the note indicates analysts expect ServiceTitan to be profitable in the current year.

The research team pointed to management’s programmatic margin improvement initiative and said the company is committed to expanding margins over the coming years. That combination of a perceived durable revenue model, visible margin plans and an expanded interest in automation helped solidify KeyBanc’s constructive stance.

Other recent analyst activity and corporate developments add context to the coverage landscape. Freedom Capital Markets reiterated its Buy rating after ServiceTitan reported quarterly results that beat Freedom Broker estimates and consensus across all major financial metrics, and set a $155.00 price target. Morgan Stanley upgraded the stock from Equalweight to Overweight and raised its price target to $131.00, citing the company’s AI potential. Goldman Sachs initiated coverage with a Neutral rating and a $117.00 target, while acknowledging ServiceTitan’s position in a large, under-digitized market. KeyBanc additionally identified ServiceTitan as a top pick for 2026 based on its market-share leadership.

On the commercial front, Azureon, a pool care service provider, selected ServiceTitan as its core technology platform to streamline operations across multiple locations. KeyBanc framed these analyst endorsements and customer wins as indicative of heightened activity and interest in the business from both institutional coverage and industry partners.


Taken together, the analyst commentary and partner announcements describe a company that has seen a notable market correction but retains multiple factors that analysts view as supportive of recovery: demand for AI-enabled automation, a subscription revenue base viewed as defensible, and a management push to improve margins.

Risks

  • Profitability concerns remain a key factor cited for the stock’s pullback; if the company does not achieve projected profitability this year, investor confidence and valuation could remain pressured - Impacts Software and Growth-oriented equities.
  • Execution risk tied to the management margin improvement program - failure to expand margins as planned would affect earnings expectations and could prolong valuation weakness - Impacts corporate operations and investor returns.
  • Market sentiment risk given recent large share declines; broader software sector moves or further multiple compression could keep the stock trading below its Fair Value despite improving fundamentals - Impacts equity markets and sector rotation dynamics.

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