Analyst Michael Turrin of Wells Fargo maintained a Buy rating on Tyler Technologies (TYL – Research Report), with a price target of $480.00.
Michael Turrin has issued a Buy rating for Tyler Technologies due to a combination of promising financial metrics and strategic progress in the company’s cloud transition. Turrin highlights Tyler Technologies’ positive free cash flow (FCF) margin projections, which have been pulled forward by a year compared to mid-term targets, indicating a stronger than expected financial performance. Moreover, the sustained growth in Software as a Service (SaaS) and the potential for margin expansion as the company moves further into its cloud-based model reinforce the Buy rating.
The analyst also points to Tyler Technologies’ initial guidance for 2024, which, while presenting mixed signals, still reflects a robust year-over-year earnings per share growth. The company’s recent deal performance, including a record transaction with the State of California and consistent growth in subscription bookings, suggests a solid momentum in new deals and progress in customer migration to cloud services. This operational advancement, coupled with an elevated request for proposal pipeline, strengthens the case for a Buy rating, and underpins Turrin’s increased profitability estimates and raised price target for Tyler Technologies’ stock.
Turrin covers the Technology sector, focusing on stocks such as Microsoft, DocuSign, and HubSpot. According to TipRanks, Turrin has an average return of -1.1% and a 54.31% success rate on recommended stocks.
In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $490.00 price target.
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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
