ServiceTitan initiated with a Neutral at Citi

Citi initiated coverage of ServiceTitan (TTAN) with a Neutral rating and $109 price target ServiceTitan is a vertical software-as-a-service company focused on providing purpose-built software for the trades industry, the analyst tells investors in a research note. The firm has a positive bias on the business but looks for a better entry point into the shares. The stock trades at a “steep valuation premium” to peers and Citi would like to get better conviction around the pace of profitability improvements given its “underwhelming Rule-of-40 standing,” contends the analyst.