TSP Weekly Tech Stock Update—April 19, 2025
This Week: NOW Q1 preview, TTAN hits new post-IPO high, Mizuho bullish on Cloudflare, TEAM upgraded at Baird, HUBS upgraded at UBS, GOOGL could spin off ad network, cybersecurity Q1 preview & more.
Hello from Rob…
—ServiceTitan (TTAN, $119.89) shares this week jumped 18.8%, adding to the prior week’s gain of 18.6%.
Here’s my write-up from last weekend on ServiceTitan, a provider of a cloud-based platform for the residential/commercial building trades.
On Wednesday, the stock hit a new post-IPO high of $123.48. ServiceTitan went public in December at $77, with an opening price of $101.
Canaccord raised its ServiceTitan price target to $130 from $120, saying it thinks the company is relatively insulated from tariff considerations, end-customer spend is largely non-discretionary and the platform drives tangible, hard-dollar ROI. The company has a total active customer base of around 9,500.
Over the longer-term, the firm believes ServiceTitan has the ability to scale to be a multi-billion-dollar revenue business with free cash flow margins that can eventually top 30%.
For FY’26 (Jan.), the consensus revenue estimate of $900.8 million represents growth of 16.7%.
—Cloudflare (NET, $107.90) was upgraded to ‘Outperform’ with a price target of $135 at Mizuho after the firm’s recent checks came back better than expected. Key bullish points: a strengthening pipeline, healthy large-deal activity and growing traction with Workers AI. Mizuho is bullish on Cloudflare’s AI inferencing opportunity, giving it more confidence in the company’s multi-year growth acceleration story.
*Inside This Issue: Two Plays on GenAI Data Security
—Paid subscribers will receive the May 2025 PDF of Tech-Stock Prospector (TSP #279) via email on Tuesday, May 13.
—Paid subscribers have access to the TSP Market Overview and TSP Portfolio Updates sections inside this issue.