On Monday, Tyler Technologies Inc . (NYSE: NYSE:TYL) shares received an updated price target from BTIG, reflecting a positive outlook on the company's performance. The new price target is set at $515, increased from the previous $500, while the firm maintains a Buy rating on the stock.
The adjustment follows the company's recent earnings call on April 25, where Tyler Technologies provided an optimistic perspective on end-market demand and sales execution, along with a strong forecast for the upcoming quarters.
This marks a significant moment for the company as it is the first time in ten years that management has revised its full-year guidance upward after the first quarter. The revision was attributed to exceeding internal targets, rather than temporary factors such as deal pull forwards or one-time events.
Tyler Technologies demonstrated a solid performance with a 7.8% organic growth rate, driven by a notable 21.3% organic growth in Software as a Service (SaaS) offerings. This contributed to an 8.2% increase in recurring revenue. These figures come despite a year-over-year decline in License revenue by 14%, which is now anticipated to drop by low-to-mid-teens for the entire year.
The company's broad-based strength was evident across various segments, including Enterprise Resource Planning (ERP), Public Safety with a 75% SaaS mix surpassing the ~50% target, Courts & Justice, cloud transitions, and Civic Services. BTIG's bullish stance on Tyler Technologies is reinforced by these developments, leading to the raised price target as the firm looks ahead to the company's prospects in 2025.
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