In a report released today, Gabriela Borges from Goldman Sachs maintained a Buy rating on Tyler Technologies (TYL – Research Report), with a price target of $490.00.
Gabriela Borges has given her Buy rating due to a combination of factors that suggest Tyler Technologies maintains strong momentum in its transition to cloud-based services, despite some deceleration in SaaS revenue growth. While there was a slight decline in year-over-year SaaS revenue growth from the third to the fourth quarter, the company has shown robust leading indicators for its SaaS transition. This is evidenced by a significant increase in both the total contract value of conversions and the annual recurring revenue from bookings, each growing by more than 60% compared to the previous year.
Furthermore, the company has demonstrated strong demand with notable large contract wins, which have bolstered both its bookings and backlog, particularly in the subscription segment. These wins include their largest transaction-based deal to date with the California Department of Parks, and a groundbreaking statewide SaaS agreement with the Idaho Supreme Court. Additionally, Tyler Technologies’ ability to exceed free cash flow expectations and meet its 2025 margin target ahead of schedule reinforces confidence in its financial health and operational efficiency. Despite some quarterly volatility expected due to the nature of government contracting, the overall demand for Tyler’s services appears steady, leading Borges to maintain a positive outlook and raise the price target for the company’s stock.
In another report released today, Needham also maintained a Buy rating on the stock with a $500.00 price target.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Tyler Technologies (TYL) Company Description:
Tyler Technologies, Inc. engages in the provision of integrated technology and management solutions and services for public sector with a focus on local governments. It operates through the Enterprise Software, and Appraisal and Tax segments. The Enterprise Software segment provides municipal and county governments and schools with software systems to meet their information technology and automation needs for mission-critical back-office functions such as financial management, courts, and justice processes. The Appraisal and Tax segment provides systems and software that automate the appraisal and assessment of real and personal property, as well as property appraisal outsourcing services for local governments and taxing authorities. The company was founded in 1966 and is headquartered in Plano, TX.
Read More on TYL:
- Tyler Technologies sees FY24 adjusted EPS $8.90-$9.10, consensus $8.78
- Tyler Technologies reports Q4 adjusted EPS $1.89, consensus $1.86
- Notable companies reporting after market close
- Tyler Technologies (TYL) Q4 Earnings Cheat Sheet
- Tyler Technologies announces five-year agreement with Idaho Supreme Court
